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Cato Podcast

Subsidize a Diagnosis, Get More Diagnoses

Cato Podcast

Cato Institute

Cato, Peace, Policy, Politics, Markets, Defense, Government, News, News Commentary, 424708, Immigration, Libertarian

4.5979 Ratings

🗓️ 23 April 2026

⏱️ 32 minutes

🧾️ Download transcript

Summary

Medicaid spending on autism therapy jumped from $300 million to $2 billion in just eight states over seven years. Cato's Ryan Bourne, Jeff Singer, and Adam Omary argue the cause isn't an epidemic; it's distorted incentives and a diagnostic manual that keeps expanding.

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Transcript

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0:00.0

Welcome to the Cato podcast. I'm Ryan Bourne, Cato's R. Evan Scharf Chair for the

0:13.1

public understanding of economics. Autism diagnoses in the United States have risen sharply over

0:18.7

recent decades, and so has Medicaid spending on therapies

0:22.0

tied to them. But how much of that actually reflects a growth in the number of children with

0:26.5

severe, genuinely disabling autism, and how much reflects looser diagnostic boundaries, distorted

0:32.8

payment incentives, and weak oversight that invite waste and abuse? To discuss this, and whether this is just the tip of the iceberg of medical misdiagnosis

0:41.8

or overdiagnosis more generally, today I'm joined by Jeffrey Singer, a senior fellow

0:47.2

in Cato's Department of Health Policy Studies.

0:49.8

Good morning.

0:50.9

And Adam Omory, making his, I believe his debut on the podcast today, a research fellow at the

0:56.4

Kato Institute Center for Global Liberty and Prosperity. Debutu Kato Podcast. Thanks for having me.

1:01.9

So Adam, let's start with you, given this is your debut. If somebody were to just briefly ask you,

1:08.6

what actually is autism or what is the kind of medical definition

1:14.1

of autism that we're trying to get out? I mean, how would you describe it?

1:18.6

Autism is a rare genetic psychiatric disorder characterized by social impairments, excessive, repetitive behaviors, and now we frame it as

1:29.7

autism spectrum disorder.

1:31.3

We see everything from, in severe cases, nonverbal children or adults who need constant care

1:39.2

to what we would now consider more mild autism spectrum cases, as in high functioning, but exhibits

1:48.7

social difficulties.

1:50.6

So there's been a well-documented increase in autism diagnosis numbers in recent decades,

1:56.4

and that's got plenty of people worried.

1:58.5

In a piece that you wrote for the Washington Post,

...

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