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

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