[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