[Congressional Bills 118th Congress] [From the U.S. Government Publishing Office] [S. 5236 Introduced in Senate (IS)] <DOC> 118th CONGRESS 2d Session S. 5236 To amend titles XIX and XXI of the Social Security Act to enhance financial support for rural and safety net hospitals providing maternity, labor, and delivery services to vulnerable populations, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES September 25, 2024 Mr. Wyden (for himself, Ms. Hassan, Ms. Stabenow, Ms. Cantwell, Mr. Carper, Mr. Cardin, Mr. Brown, Mr. Bennet, Mr. Casey, Mr. Warner, Mr. Whitehouse, Ms. Cortez Masto, Ms. Warren, Mr. Helmy, Ms. Duckworth, Mr. Booker, Mr. Merkley, and Mrs. Murray) introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend titles XIX and XXI of the Social Security Act to enhance financial support for rural and safety net hospitals providing maternity, labor, and delivery services to vulnerable populations, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Keeping Obstetrics Local Act''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--ENHANCING FINANCIAL SUPPORT FOR RURAL AND SAFETY NET HOSPITALS THAT PROVIDE OBSTETRIC SERVICES Sec. 101. State studies and HHS report on costs of providing maternity, labor, and delivery services. Sec. 102. Requiring adequate payment rates under Medicaid for maternity, labor, and delivery services at eligible hospitals. Sec. 103. Increased Federal financial participation for maternity, labor, and delivery services furnished by eligible hospitals. Sec. 104. Labor and delivery services anchor payments. Sec. 105. Application of adequate payment requirement and increased Federal financial participation requirements to CHIP. Sec. 106. Disregarding increased and additional payments to hospitals for purposes of other supplemental payments and upper payment limits. TITLE II--EXPAND COVERAGE OF MATERNAL HEALTH CARE Sec. 201. Requiring 12-month continuous, full benefit coverage for pregnant individuals under Medicaid and CHIP. Sec. 202. Health homes for pregnant and postpartum women. Sec. 203. Guidance on supporting and improving access to Medicaid and CHIP coverage of services provided by doulas and certain maternal health professionals. Sec. 204. Medicaid and CHIP increased financial support for depression and anxiety screening during the perinatal and postpartum periods. Sec. 205. Presumptive eligibility for pregnant individuals. TITLE III--INVEST IN THE MATERNAL HEALTH CARE WORKFORCE Sec. 301. Emergency obstetric workforce support. Sec. 302. Streamlined screening and enrollment of providers of maternity, labor, and delivery services in neighboring States. TITLE IV--REQUIRING PUBLIC COMMUNICATION OF OBSTETRICS DATA AND UNIT CLOSURES Sec. 401. Timely notifications of impending hospital obstetric unit closures. Sec. 402. Collection of data relating to hospital labor and delivery services. TITLE I--ENHANCING FINANCIAL SUPPORT FOR RURAL AND SAFETY NET HOSPITALS THAT PROVIDE OBSTETRIC SERVICES SEC. 101. STATE STUDIES AND HHS REPORT ON COSTS OF PROVIDING MATERNITY, LABOR, AND DELIVERY SERVICES. (a) State Study.-- (1) In general.--In order to meet the requirement of section 1902(a)(6) of the Social Security Act (42 U.S.C. 1396a(a)(6)), not later than 1 year after the date of enactment of this Act, and every 5 years thereafter, each State (as such term is defined in section 1101(a)(1) of the Social Security Act (42 U.S.C. 1301(a)(1)) for purposes of titles XIX and XXI of such Act) shall conduct a study on the costs of providing maternity, labor, and delivery services in hospitals and submit the results of such study to the Secretary of Health and Human Services (referred to in this section as the ``Secretary''). (2) Content of study.--A State study required under paragraph (1) shall include the following information with respect to maternity, labor, and delivery services furnished by hospitals located in the State: (A) An estimate of the cost of providing maternity, labor, and delivery services at hospitals for which more than 50 percent of births are financed by the Medicaid program or the Children's Health Insurance Program, based on the expenditures a representative sample of such hospitals incurred for providing such services during the 2 most recent years for which data is available. (B) An estimate of the full cost of providing maternity, labor, and delivery services at independent rural hospitals with less than 300 births per year, based on the expenditures a representative sample of such hospitals incurred for providing such services during the 2 most recent years for which data are available. (C) An estimate of the cost of providing maternity services at hospitals that ceased providing labor and delivery services within the past 5 years, based on the expenditures a representative sample of such hospitals incurred for providing such services during the 2 most recent years for which data is available. (D) To the extent data allows, an analysis of the extent to which factors such as geographic location and community population affect the cost of providing maternity, labor, and delivery services at hospitals, including the cost of hospital services that support the provision of maternity, labor, and delivery services. (E) The amounts hospitals are paid for maternity, labor, and delivery services, by geographic location and hospital size, under Medicare, the State Medicaid program, the State CHIP plan, and private health insurance, including, with respect to the State Medicaid program, the State CHIP plan, and private health insurance, payment amounts for such services under fee-for-service payment arrangements and under managed care (as applicable). (F) A comparative payment rate analysis-- (i) comparing maternity, labor, and delivery services payment rates under the State Medicaid fee-for-service program to payment rates for such services under Medicare (as described in section 447.203(b)(3) of title 42, Code of Federal Regulations), other federally- funded or State-funded programs (including, to the extent data is available, Medicaid managed care rates), and to the payment rates, to the extent data is available, of private health insurers within geographic areas of the State; and (ii) analyzing different payment methods for such services, such as the use of bundled payments, quality incentives, and low-volume adjustments. (G) An evaluation of whether each hospital located in the State that furnishes maternity, labor, and delivery services is expected to experience in the next 3 years-- (i) significant changes in particular expenditures or types of reimbursement for maternity, labor, and delivery services; or (ii) any other significant change that is likely to affect the hospital's ability to continue to provide such services. (3) Assistance to small hospitals in compiling cost information.--There is appropriated to the Secretary for each fiscal year beginning with fiscal year 2025, $10,000,000 for the purpose of providing grants and technical assistance to small rural obstetric hospitals to enable such hospitals to compile detailed information on expenses incurred for maternity, labor, and delivery services for use in the State studies required under paragraph (1), to remain available until expended. (4) HHS report on state studies.--For each year in which State studies are required to be conducted under paragraph (1), the Secretary shall issue a public report that compiles and details the results of such studies and includes the information described in paragraph (2). (b) HHS Report and Proposed Legislation.--Not later than 2 years after the date of enactment of this Act, the Secretary shall submit to Congress and make publicly available a report analyzing the first studies conducted by States under subsection (a)(1) that includes-- (1) recommendations for improving data collection on the cost of providing maternity, labor, and delivery services; (2) guidance to States on the collection of such data; and (3) if the Secretary determines it appropriate based on the findings made by the Secretary in such report, proposed legislation or administrative action, including, to the extent the Secretary determines appropriate, issuance of regulations, to adjust the amounts paid for maternity, labor, and delivery services under Medicare, State Medicaid plans, and other federally-funded payers, to more accurately compensate eligible hospitals (as such term is defined in subsection (uu) of section 1902 of the Social Security Act (42 U.S.C. 1396a), as added by section 102) for the cost of providing such services. SEC. 102. REQUIRING ADEQUATE PAYMENT RATES UNDER MEDICAID FOR MATERNITY, LABOR, AND DELIVERY SERVICES AT ELIGIBLE HOSPITALS. (a) Fee-for-Service Payments.--Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended-- (1) in subsection (a)(13)-- (A) by striking ``and'' at the end of subparagraph (B); (B) by adding ``and'' at the end of subparagraph (C); and (C) by adding at the end the following new subparagraph: ``(D) for each fiscal year beginning with fiscal year 2026, payment for maternity, labor, and delivery services (as defined in subsection (uu)) furnished during such fiscal year in an eligible hospital (as defined in such subsection) at a rate that is not less than the minimum payment rate specified for the fiscal year in paragraph (4) of such subsection;''; and (2) by adding at the end the following new subsection: ``(uu) Maternity, Labor, and Delivery Services and Eligible Hospitals Defined.--For purposes of subsection (a)(13)(D)-- ``(1) Maternity, labor, and delivery services.-- ``(A) In general.--The term `maternity, labor, and delivery services' means such inpatient hospital services and outpatient hospital services, including behavioral health services, that are provided in relation to maternity care or labor and delivery, identified by appropriate ICD and CPT codes, as the Secretary shall specify after consultation with professional or medical societies with expertise in pregnancy, childbirth, and postpartum care. ``(B) Scope.--Such term shall not be limited in application, for any eligible hospital, only to services that relate to a birth that occurs in the hospital. ``(C) Rulemaking.--Not later than July 1, 2025, the Secretary shall issue an interim final rule specifying which services shall be considered maternity, labor, and delivery services for purposes of this subsection and subsection (a)(13)(D). ``(2) Eligible hospital.-- ``(A) In general.--The term `eligible hospital' means, with respect to a State and fiscal year-- ``(i) a hospital that is located in a rural area (as defined by the Federal Office of Rural Health Policy for the purpose of rural health grant programs administered by such Office); ``(ii) a critical access hospital (as defined in section 1861(mm)(1)); ``(iii) a hospital operated by the Indian Health Service or an Indian Tribe under the Indian Self-Determination and Education Assistance Act; ``(iv) a hospital for which, in the most recent 12-month period for which data is available, at least 50 percent of all births for which the hospital provided maternity, labor, and delivery services during such fiscal year were qualifying births; or ``(v) a hospital that is able to demonstrate, through a process to be determined by the Secretary, that, for the applicable fiscal year, the hospital projects that at least 50 percent of all births for which the hospital will provide maternity, labor, and delivery services during such fiscal year will be qualifying births. ``(B) Identification of eligible hospitals.--Each State, subject to the approval of the Secretary, shall identify the hospitals in the State that are eligible hospitals with respect to a fiscal year. ``(3) Qualifying birth.--For purposes of paragraph (2), the term `qualifying birth' means a birth for which any maternity, labor, and delivery services associated with the birth-- ``(A) were paid for under a State plan under this title (or under a waiver of such a plan) or under a State child health plan under title XXI (or under a waiver of such a plan); ``(B) were paid for under title XVIII; ``(C) were provided by the Indian Health Service or a Native Hawaiian health care system (as defined in section 12 of the Native Hawaiian Health Care Improvement Act); or ``(D) were provided to a patient who does not have minimum essential coverage (as defined in section 5000A(f) of the Internal Revenue Code of 1986) and were not fully paid for by such patient. ``(4) Minimum payment rate specified.--The minimum payment rate specified in this paragraph is, with respect to an eligible hospital and maternal, labor, and delivery services-- ``(A) for fiscal year 2026, 150 percent of the payment rate that would apply for such services and hospital under title XVIII; and ``(B) for each period of 5 fiscal years beginning with fiscal years 2027 through 2031, a payment rate that is determined for such period by the Secretary to accurately reflect the costs incurred by eligible hospitals in providing such services, informed by the results of the most recent State studies submitted to the Secretary under section 101(a) of the Keeping Obstetrics Local Act.''. (b) Under Medicaid Managed Care Plans.--Section 1932(f) of the Social Security Act (42 U.S.C. 1396u-2(f)) is amended-- (1) in the heading, by inserting ``and Maternity, Labor, and Delivery Services at Eligible Hospitals'' after ``Services''; and (2) by striking ``described in section 1902(a)(13)(C)'' and inserting ``described in subparagraph (C) of section 1902(a)(13) or maternity, labor, and delivery services described in subparagraph (D) of such section that are furnished by an eligible hospital (as defined in section 1905(uu))''. SEC. 103. INCREASED FEDERAL FINANCIAL PARTICIPATION FOR MATERNITY, LABOR, AND DELIVERY SERVICES FURNISHED BY ELIGIBLE HOSPITALS. Section 1905 of the Social Security Act (42 U.S.C. 1396d) is amended-- (1) in subsection (b), by striking ``and (ii)'' and inserting ``(ii), and (kk)''; and (2) by adding at the end the following new subsection: ``(kk) Maternity, Labor, and Delivery Services.-- ``(1) In general.--Notwithstanding subsection (b), with respect to State expenditures for medical assistance for maternity, labor, and delivery services furnished by an eligible hospital (as such terms are defined in section 1902(uu)) in a fiscal quarter that begins on or after October 1, 2025-- ``(A) the Federal medical assistance percentage applicable to the enhanced payment rate amount of such expenditures (as determined for the State and quarter under paragraph (2)(A)) shall be equal to 100 percent; and ``(B) subject to paragraph (3), the Federal medical assist