This bill amends Minnesota Statutes 2024, section 256B.0625, subdivision 54, to modify reimbursement rates for services provided by licensed birth centers under the medical assistance program. The current reimbursement structure allows for facility services to be paid at the lower of billed charges or 70 percent of the statewide average for hospital facility payment rates for uncomplicated vaginal births. However, this will change effective January 1, 2027, or upon federal approval, to a new rate of 100 percent of the hospital facility fee cost for the same services. Additionally, if a recipient is transported from a birth center to a hospital before delivery, the payment structure will also adjust to reflect this new rate.

Furthermore, the bill introduces provisions for reimbursement of services provided to newborns in birth centers, which will also transition to 100 percent of the average room and board cost for a hospital stay by the same effective date. It mandates that birth center providers be reimbursed for the full range of maternity care services within their scope of practice, regardless of the place of service, and requires the commissioner to review current reimbursement practices in consultation with licensed birth centers to ensure comprehensive maternal health services are adequately covered.

Statutes affected:
Introduction: 256B.0625