This bill modifies reimbursement rates for services provided by birth centers under Minnesota's medical assistance program. Specifically, it amends Minnesota Statutes 2024, Section 256B.0625, Subdivision 54, to increase payment rates for birth center services.

Key Provisions:

1. Current Reimbursement Rates (Before January 1, 2027):

   • Facility services at birth centers are reimbursed at the lower of billed charges or 70% of the statewide average facility payment rate for an uncomplicated vaginal birth in a hospital.
   • If a patient is transported from a birth center to a hospital before delivery, the payment to the birth center is the lower of billed charges or 15% of the hospital facility rate for an uncomplicated vaginal birth.
   • Nursery care at a birth center is reimbursed at 70% of the statewide average hospital payment for nursery care.

2. Changes Effective January 1, 2027 (or upon federal approval, whichever is later):

   • Facility service payments at birth centers will increase to 100% of the hospital facility fee cost for an uncomplicated vaginal birth.
   • Payments for transported patients will also be 100% of the hospital facility cost.
   • Nursery care services will be reimbursed at 100% of the average hospital room and board cost.
   • Birth center providers will be reimbursed for the full range of maternity care services within their scope of practice, regardless of location.
   • The commissioner of health must review current birth center reimbursement practices and collaborate with existing licensed birth centers to update payment policies to ensure comprehensive maternal health service reimbursement.

3. Professional Services:

   • Licensed traditional midwives will be reimbursed at 100% of the rate paid to physicians for the same services.
   • If a patient is transferred to a hospital before delivery, the traditional midwife who does not perform the delivery cannot bill for those services.
   • Services provided by unlicensed traditional midwives are not covered.

4. Federal Waivers:

   • The commissioner must seek necessary waivers from the Centers for Medicare and Medicaid Services (CMS) to implement these changes.

Summary:

The bill aims to increase reimbursement rates for birth center services, ensuring parity with hospital payments for similar maternity care services. It also mandates a review of current reimbursement practices and requires federal approval for these changes. The goal is to support birth centers and expand access to comprehensive maternal health care in Minnesota.