H.R. 5202 — BABIES Act

This section establishes a grant program under the Public Health Service Act to assist eligible freestanding birth centers—accredited or seeking accreditation (e.g., by the Commission for the Accreditation of Birth Centers)—with start-up or expansion costs to improve access to services in underserved areas. For each of FY2026 through 2030, the Secretary, through the Health Resources and Services Administration, may award up to 15 grants per year in amounts from $300,000 to $500,000 each for (1) facility renovation, expansion, or construction; (2) equipment purchase or updates; or (3) accreditation and state licensure activities, with priority for centers in maternity care health professional shortage areas, areas with poor maternity care outcomes, or prior non-recipients. The section authorizes $5 million for the period.

This section establishes a Medicaid demonstration program to explore more effective payment models for freestanding birth center services (i.e., non-hospital facilities providing prenatal, labor and delivery, postpartum, and newborn care), improving access, quality, and scope for women with low-risk pregnancies who are eligible under a state plan or waiver. Not later than one year after enactment, the Secretary must (1) publish criteria for states to certify participating freestanding birth centers, including accreditation by a nationally recognized body, state licensure, care coordination with federally qualified health centers, clinics, and hospitals, evidence-based peripartum services for low-risk pregnancies, emergency readiness with at least two qualified staff per birth and hospital transfer plans, data collection and quality improvement capabilities, and employment or arrangements with a licensed physician and a licensed midwife meeting International Confederation of Midwives standards; and (2) issue guidance for states to establish a prospective payment system applicable only to qualifying services furnished by certified centers, with procedures to prevent duplicate payments for otherwise covered Medicaid services.