Committee advances bill to raise Medicaid facility reimbursement for birth centers

Representative Herndon presented House Bill 56 to the Commerce & Economic Development Committee, proposing that the secretary of the Health Care Authority adopt rules to ensure Medicaid facility payments for noncomplicated vaginal births at licensed, nationally accredited birth centers are comparable to hospital facility payments.

Abigail Landon Eves, executive director of Darla Luz Birth and Health Center, and other birth-center representatives told the committee that birth centers can expand access to prenatal, delivery and postnatal care for low-risk patients, particularly in counties described in testimony as maternal health deserts. "By increasing birth center facility reimbursements, you would create more sustainability for our birth center model," Eves told the committee, citing financial differences between hospital and birth-center reimbursements.

The committee considered an amendment worked out with the Medicaid office that preserved the bill's intent while giving the Health Care Authority rulemaking authority to create the reimbursement methodology and to align birth-center facility increases with hospital increases. Abigail Eves and Carrie Robin Brunder (identified as a volunteer governing-board member) explained the amendment to the committee.

Supporters included the New Mexico Nursing Association, the New Mexico Nurse Practitioner Council, Breath of My Heart Birthplace (an Indigenous-led birth center), doulas and community groups. Testimony emphasized that closures of labor-and-delivery units in some communities have left pregnant people with long travel times to hospitals. The nursing association told the committee that the bill would help residents in rural areas where birthing units have closed.

Medicaid officials testified they had worked with the sponsor and that the amendment addressed many of their concerns. Committee members asked whether birth centers must be nationally accredited and whether reimbursement parity could encourage more birth centers to pursue accreditation; witnesses said national accreditation and state licensing are prerequisites for the Medicaid facility payments under current rules and that higher facility payments could make openings and accreditation more financially feasible.

On a due-pass motion as amended, the committee advanced HB56. Representative Lehi moved the due-pass motion and Representative Serrato seconded it. The committee reported the bill out with a recorded tally of 7 votes in favor and 2 opposed. Representative Patahone (Parajon) explained a yes vote emphasizing support for birth centers and rural access.

Supporters said the potential systemwide savings come from reduced cesarean-section rates when more low-risk births are managed in birth centers; witnesses cited lower c-section rates among birth-center patients compared with hospital averages as one element of longer-term fiscal benefit. Opponents were limited in the hearing; some members said they wanted more clarity about how parity would affect hospitals, malpractice exposure and rural hospital budgets.

The bill will proceed in the legislative process with the committee's do-pass endorsement as amended.