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 with the introduction of new provisions effective January 1, 2027, or upon federal approval, which will increase the reimbursement to 100 percent of the hospital facility fee cost for uncomplicated vaginal births. Additionally, if a recipient is transported from a birth center to a hospital prior to delivery, the payment structure will also adjust to reflect this new rate.

Furthermore, the bill introduces a new reimbursement framework for newborn care provided by birth centers, which will also transition to 100 percent of the average room and board cost for a hospital stay effective January 1, 2027, or upon federal approval. The bill 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