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Committee adopts amendment and advances HB56 to equalize Medicaid facility payments for birth centers; sponsors say change will support rural access
Summary
House Bill 56, backed by midwives and birth‑center advocates, was amended and given a favorable committee recommendation. The measure directs the Health Care Authority secretary to adopt rules enabling Medicaid facility reimbursements for uncomplicated births at accredited birth centers to be comparable to hospital facility fees.
Representative Herndon presented House Bill 56, which aims to make Medicaid facility reimbursements for noncomplicated vaginal births at licensed, nationally accredited birth centers comparable to payments hospitals receive for the same services. The sponsor said the change would help make birth centers financially sustainable and expand out‑of‑hospital options in areas losing labor and delivery services.
The committee unanimously adopted a sponsor‑filed amendment developed with the Medicaid office. The amendment asks the secretary of the Health Care Authority to promulgate rules that establish a reimbursement methodology and to align future hospital rate increases with comparable increases for birth centers.
Multiple witnesses supported the bill. Abigail Landon Eves, executive director of Data Luz Birth and Health Center, described financial differences between the birth center’s current reimbursements and hospital facility fees and said parity would help sustain and expand accredited birth centers. The New Mexico Nursing Association and the Nurse Practitioner Council urged support, saying closures of local labor and delivery units have left “maternal health deserts.” Breath of My Heart Birthplace, an Indigenous‑led clinic, and a range of doulas, midwives and community advocates testified that enhanced facility reimbursement would improve access for low‑risk pregnant people in rural, tribal and underserved areas.
The Health Care Authority’s medical director said the amendment addressed many agency concerns, and the agency indicated it had worked with the sponsor on the language. Committee members asked about differences between professional provider payments (the clinician fee) and facility payments; witnesses explained hospitals and birth centers bill separately for clinician (professional) services and facility fees, and that parity pertains to the facility fee for comparable, uncomplicated deliveries.
Representative Lujan moved a due‑pass motion on the bill as amended. The committee recorded a roll call and returned a favorable recommendation: the tally recorded in committee was 7 yes, 2 no. Representative Patahone explained her yes vote as supportive of birth centers and of ensuring the bill works for centers serving Hispanic and Native communities.
The bill now advances from committee with a do‑pass recommendation as amended.
