The bill mandates an increase in the Medicaid reimbursement rate for obstetrics and gynecology health care services to at least 250% of the Medicare reimbursement rate for equivalent services. It establishes a new section in the Public Assistance Act that outlines the reimbursement structure, ensuring that services covered by Medicaid but not by Medicare will also receive proportional increases. Additionally, health care entities benefiting from these increased reimbursements are required to allocate at least 75% of the additional revenue towards enhancing compensation for health care workers or hiring more staff who directly interact with patients.

Furthermore, the bill includes an appropriation of $12 million from the general fund to the health care authority for the fiscal year 2026, specifically aimed at supporting the increased Medicaid reimbursement 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.