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Panel advances bill to raise reimbursement for freestanding birth centers
Summary
Senate File 2109 would raise reimbursement rates for freestanding birth centers and direct DHS to resolve billing mismatches so centers can be paid for labor support and required newborn services. Testimony emphasized better outcomes and recent closures tied to unsustainable payments; an author's amendment was adopted and the bill was laid over.
Senator Ann Pappas presented Senate File 2109, which would increase the reimbursement rates paid by medical assistance for the facility portion of care at freestanding birth centers and direct the Department of Human Services to work with birth centers to resolve billing mismatches.
Amy Johnson Grass, a midwife and president of the Minnesota chapter of the American Association of Birth Centers, described freestanding birth centers as licensed, accredited facilities that provide prenatal, labor and delivery, and postpartum care for low-risk pregnancies and said pay models currently do not align with the birth center model. She told the committee that two birth centers in Minnesota closed in the prior year primarily due to financial stress from inadequate reimbursement.
"Freestanding birth centers are independent facilities that provide comprehensive maternity care," Johnson Grass said, noting research showing lower cesarean rates, fewer maternal complications and lower NICU admissions for birth center care. Testimony from Dr. Shekinah Fasha Walters recounted a personal experience where birth-center care changed the outcome for her delivery.
The authors' A1 amendment was adopted by voice vote. Senators expressed support for expanding access, noting both potential cost savings from better outcomes and equity arguments. The committee laid Senate File 2109 over for possible inclusion in a future omnibus package.
