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.

Additionally, the Secretary is required to adopt rules that will create a methodology for determining these reimbursement rates and ensure that annual increases in reimbursement rates for birth centers align with those of hospitals. This legislative change aims to promote equitable financial support for birth centers, thereby enhancing access to low-risk delivery services for Medicaid recipients.