This bill amends Minnesota Statutes 2024, Section 256B.0625, Subdivision 54, modifying reimbursement rates for birth centers providing services under the state’s Medical Assistance (Medicaid) program.

Key Provisions of the Bill:

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 hospital payment for uncomplicated vaginal births.
   • If a patient is transferred from a birth center to a hospital before delivery, the birth center receives 15% of the hospital’s facility payment for such births.
   • Nursery care services at birth centers are reimbursed at the lower of billed charges or 70% of the hospital nursery care payment rate.

2. New Reimbursement Rates (Effective January 1, 2027, or upon federal approval):

   • Facility services at birth centers will be reimbursed at the lower of billed charges or 100% of the hospital facility cost for uncomplicated vaginal births.
   • If a patient is transferred to a hospital before delivery, the birth center will receive 100% of the hospital facility cost for those services.
   • Newborn nursery care will be reimbursed at 100% of the average hospital room and board cost for newborns.

3. Reimbursement for Licensed Traditional Midwives:

   • Licensed traditional midwives will be reimbursed at 100% of the rate paid to physicians for the same services.
   • If a midwife does not complete the delivery due to a hospital transfer, they cannot bill for delivery services.
   • Services provided by unlicensed traditional midwives are not covered.

4. Expansion of Reimbursable Services for Birth Centers (Effective January 1, 2027, or upon federal approval):

   • Birth center providers must be reimbursed for a full range of maternity care services, regardless of the place of service.
   • The Minnesota Commissioner of Human Services must review and revise current birth center reimbursements in consultation with licensed birth centers to ensure comprehensive maternal health services are covered.

5. Federal Approval:

   • The Minnesota Department of Human Services will apply for any necessary Medicaid waivers from Centers for Medicare & Medicaid Services (CMS) to implement these reimbursement changes.

Summary Impact:

• Increase in payment rates for birth center services to match hospital reimbursement levels.
• Improved financial sustainability for birth centers by ensuring comprehensive maternity services are covered.
• Greater accessibility to birth center maternity care under Medicaid.

This bill supports birth centers by ensuring they are paid at hospital-equivalent rates, thereby facilitating access to midwifery and birth center care for Medicaid patients in Minnesota.