BABIES Act
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Summary
The BABIES Act establishes federal grants and a Medicaid demonstration program to expand access to freestanding birth centers in underserved areas. The bill authorizes $5 million in grants (2026–2030) to up to 15 birth centers annually for startup and expansion costs, with priority given to centers in health professional shortage areas or regions with poor maternity outcomes. It also directs the Secretary of Health and Human Services to develop a Medicaid demonstration program in participating states to test alternative payment models for birth center services, including prospective payment systems that account for various scenarios such as transfers to hospitals and partial episodes of care.
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