The bill proposes a significant increase in the Medicaid reimbursement rate for obstetrics and gynecology health care services, mandating that the rate be set at a minimum of two hundred fifty percent of the Medicare reimbursement rate for equivalent services. This new section of the Public Assistance Act outlines that, starting from July 1, 2024, any Medicaid services in this category not covered by Medicare will also receive proportional increases based on the established rate. Additionally, health care entities benefiting from these increased reimbursements are required to allocate at least seventy-five percent of the additional revenue towards enhancing compensation for health care workers or hiring more staff who directly interact with patients.

To support this initiative, the bill includes an appropriation of twelve million dollars from the general fund to the health care authority for the fiscal year 2026, specifically aimed at funding the increased Medicaid reimbursement rates for obstetrics and gynecology services. Any funds that remain unspent or unencumbered by the end of that fiscal year will revert back to the general fund.