The bill mandates that the Secretary of Health Care Authority establish Medicaid reimbursement rates for services provided at birth centers, ensuring these rates are comparable to those for similar services offered at hospitals. It defines a "birth center" as a licensed, freestanding facility focused on low-risk deliveries, distinct from hospitals. The bill also outlines the definitions of "medicaid" and "medicaid recipient" to clarify the scope of the legislation.

To implement this, the Secretary is required to adopt rules that will create a methodology for determining the Medicaid facility fee reimbursement rates for birth centers, aligning them with hospital rates. Additionally, the bill stipulates that there should be annual increases in reimbursement rates for birth centers that are equivalent to those for hospitals, promoting equitable financial support for these facilities.