This bill mandates a significant increase in the Medicaid reimbursement rate for obstetrics and gynecology health care services, setting it at a minimum of two hundred fifty percent of the Medicare reimbursement rate for equivalent services. It establishes a new section within the Public Assistance Act that outlines the reimbursement structure, including provisions for services covered by Medicaid but not by Medicare. Additionally, it requires that at least seventy-five percent of any increased reimbursement revenue be allocated to enhancing compensation for health care workers or hiring additional staff who directly interact with patients.

To support this initiative, the bill appropriates twelve million dollars from the general fund for the health care authority to utilize in fiscal year 2026 specifically for increasing Medicaid reimbursement rates for these services. Any funds that remain unspent or unencumbered by the end of that fiscal year will revert back to the general fund.