State reviews birth center reimbursement policies for maternity care services

On March 3, 2025, the Minnesota State Legislature introduced Senate Bill 2109, a significant piece of legislation aimed at reforming reimbursement practices for birth centers and traditional midwives. This bill seeks to address the financial disparities faced by these providers in the state's maternal health care system, particularly in light of increasing demands for accessible and comprehensive maternity care.

The primary purpose of Senate Bill 2109 is to establish a more equitable payment structure for services rendered by birth centers and licensed traditional midwives. Key provisions include stipulations that payments for facility services at birth centers will be capped at either billed charges or a percentage of hospital facility fees, specifically for uncomplicated vaginal deliveries. Notably, beginning January 1, 2027, or upon federal approval, the bill mandates that birth centers be reimbursed for the full range of maternity care services they provide, regardless of the location of service.

The bill also addresses nursery care services, proposing that these be reimbursed at 70 percent of the statewide average payment rate for hospitals. This provision is set to expire once the new reimbursement structure for birth centers is implemented. Additionally, the legislation outlines that licensed traditional midwives will be compensated at rates equivalent to those paid to physicians for similar services, reinforcing the importance of midwifery in maternal health care.

Senate Bill 2109 has sparked notable discussions among lawmakers and health care advocates. Proponents argue that the bill is essential for improving access to maternity care, particularly for underserved populations who may prefer the more personalized approach offered by birth centers. Critics, however, have raised concerns about the potential financial implications for the state’s Medicaid budget and the feasibility of implementing the proposed changes without additional funding.

The economic implications of this bill are significant, as it aims to enhance the viability of birth centers and midwifery services, which could lead to improved maternal and infant health outcomes. By ensuring that these providers receive fair compensation, the legislation may encourage more families to utilize their services, ultimately contributing to a more robust and diverse maternal health care landscape in Minnesota.

As the bill progresses through the legislative process, stakeholders will be closely monitoring its developments. The outcome of Senate Bill 2109 could set a precedent for how maternal health services are funded and delivered in Minnesota, with potential ripple effects on similar legislation in other states. The anticipated review of current reimbursement practices by the commissioner, in consultation with licensed birth centers, will be a critical step in shaping the future of maternal health care in the state.