This bill mandates the Department of Health and Human Services to create an administrative day rate and a swing bed rate under the state Medicaid plan for specific hospital stays involving parents of newborns. The new section, RSA 126-A:18-c, outlines that the administrative day rate will apply to hospital stays where a client does not qualify for acute inpatient care but cannot be discharged due to the unavailability of appropriate placements and the need for continuous care for the newborn. The bill specifies that the department will use the annual statewide weighted average nursing facility Medicaid payment rate to update this rate annually, and it will cover up to five newborn administrative days, with the possibility of additional days through expedited prior authorization. The bill also stipulates that the postpartum parent must room with their newborn and receive prescribed medications during their stay.

Additionally, the bill establishes a swing bed day rate for clients receiving approved nursing services in swing beds, clarifying that hospitals will not receive the acute inpatient rate for these days. The department will set the payment methodology and criteria through rules adopted under RSA 541-A. The bill is projected to incur an annual expenditure of approximately $7.3 million from the state general fund, as it does not provide federal matching funds unless specific eligibility criteria are met. The act is set to take effect on July 1, 2025.