Aug. 4 (UPI) — Federal officials on Tuesday urged states to tighten oversight of autism therapy providers to curb costs and avoid fraud.

Costs for applied behavior analysis have increased 421% between 2021 and 2025, outpacing the 67% rise in the number of children diagnosed with autism, data from the Centers for Medicare and Medicaid Services shows.

The new initiative by the Trump administration aims to address growing concerns about the rise in costs to ensure treatment is based on medical need and not financial incentives.

Health Secretary Robert F. Kennedy Jr. said the recommendations unveiled Tuesday are targeted at “fraud schemes that exploit children with autism and misuse funds from American taxpayers.”

“This toolkit gives states practical tools that may be used to identify bad actors, protect families, and hold providers accountable,” he said in statement.

Medicaid costs for autism therapy reached $10 billion in 2025 compared to $2 billion in 2021, The New York Times reported.

On an individual basis, costs over the same time period increased from a median $8,903 to $21,203, the newspaper reported.

“We were seeing quite an explosion in costs,” Caprice Knapp, principal deputy director at CMS, told The Times. “We want to make sure the profit motivation isn’t overtaking what’s in the best interest of children.”

CMS Administrator Dr. Mehmet Oz said the initiative would help ensure care is delivered by qualified providers in a manner that is clinically appropriate.

“Every dollar lost to fraud or waste is a dollar that cannot reach a child who genuinely needs it,” Oz said.