Bill H.40 aims to establish a licensing framework for freestanding birth centers in Vermont while exempting them from the certificate of need review process. The bill emphasizes the importance of reducing healthcare costs, protecting women's access to essential prenatal and maternity care, and ensuring that women have choices regarding their birthing options. It includes provisions for the licensing and regulation of birth centers, which must meet specific health, safety, and sanitation standards. Additionally, the bill mandates that health insurance plans and Medicaid cover services provided at licensed birth centers, including prenatal, maternity, postpartum, and newborn care.

Key provisions of the bill include the removal of the certificate of need requirement for establishing birth centers, the introduction of a licensing process with a $250 application fee, and the establishment of rules to align Vermont's birth center regulations with national standards. The Agency of Human Services is tasked with seeking federal approval to allow Medicaid to cover services provided at licensed birth centers. The act is set to take effect on January 1, 2026, with specific deadlines for the submission of Medicaid coverage requests.

Statutes affected:
As Introduced: 18-9435(a), 18-9435, 8-4099d