Committee OKs Medicaid reimbursement for licensed birthing centers, citing cost and access benefits
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Summary
The committee voted 8–1 to pass House Bill 4, which allows Wyoming Medicaid to pay a facility fee for state‑licensed freestanding birthing centers; agencies said no licensed centers existed yet and the change would allow future licensed centers to be enrolled and receive facility fees.
The Labor, Health & Social Services Committee approved House Bill 4 by an 8–1 roll‑call vote, authorizing Medicaid reimbursement for facility fees at state‑licensed freestanding birthing centers.
State Medicaid staff told the committee the change is a technical but necessary step: Wyoming has no licensed freestanding birth centers at present, and the state currently holds a waiver because no such provider type exists for enrollment. When centers obtain state licensure, Medicaid would enroll them and set facility rates; agency staff said the facility fee and overall costs would likely be lower than a hospital facility fee for comparable, uncomplicated births.
Jesse Springer, the state Medicaid agent, told the committee that an average Medicaid claim for an uncomplicated birth (facility plus physician) is roughly $7,000 and that the department already pays provider fees to enrolled midwives; HB 4 would enable a separate facility fee for licensed birth centers. "Once there is a licensed facility, we would then have to communicate that to the federal government and begin the process of adding the service to the state plan," Springer said, describing the administrative steps and timing.
Owners of Wyoming’s first freestanding birth center in Cheyenne, including Sarah Morey, said their facility is nationally accredited and that about 30% of their clients are Medicaid beneficiaries; they said receiving a facility fee is necessary to sustain operations and would keep births and Medicaid spending in state. Sarah Morey told members the center expects to serve 60 to 80 families this year and that birthing centers nationally have lower cesarean rates and shorter hospital stays, which can reduce Medicaid costs.
Committee members asked about rate setting and the potential fiscal effect. Department staff said a facility fee would generally be lower than hospital facility fees and that shifting low‑risk births to birth centers would likely lower Medicaid spending overall. Officials also said the state had pursued a waiver previously because no licensed freestanding birth centers existed, and that adding the service would trigger routine federal state‑plan processes.
On final action the committee recorded eight ayes and one no and passed the bill; the chair invited members to contact her if they wish to carry the bill to the floor. If enacted, the statutory change would allow future licensed freestanding birth centers to enroll in Wyoming Medicaid and receive a facility fee pending the department’s rate‑setting work.
Supporters framed the bill as a limited, fiscally prudent step to expand options and address maternal‑health deserts; opponents raised implementation questions about rates, licensing timelines and whether coverage would change provider behavior.