Congress·In Committee·S. 2059

Senate Bill Would Boost Medicaid Payments to Keep Rural Labor-and-Delivery Units Open

Keeping Obstetrics Local Act

9 months ago·View on Congress.gov

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Stalled

No legislative action in over 90 days.

Legislative Progress

Senate

House

President

Law

Key Points

Requires states to pay certain rural and safety-net hospitals more for maternity, labor, and delivery care under Medicaid starting in 2027, aiming to keep local labor-and-delivery units open.
Boosts federal support for those higher payments, including the federal government paying 100% of the “extra” amount above a state’s older baseline rate for eligible hospitals starting in late 2026.
Creates extra “anchor payments” for very low-birth-volume hospitals starting in 2028, including a per-birth amount and a separate standby amount to help cover the cost of keeping staff and rooms ready 24/7.
Expands Medicaid and children’s coverage so people who qualify while pregnant keep full benefits for 12 months after pregnancy ends, not just pregnancy-related care.
Adds steps to improve access and oversight: easier Medicaid enrollment for nearby out-of-state maternity providers, more support for postpartum depression/anxiety screening, and required public notice before a hospital closes an obstetrics unit.

HealthcareMedicare MedicaidRenewable EnergyLabor EmploymentConsumer Protection

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(3)

Gig Worker

Neutral

Small Business Owner

Neutral

Housing Assistance

Neutral

Positive Impacts(8)

Medicaid

Helps

Chronic Illness

Helps

Pregnant

Helps

Aca Marketplace

Helps

Mental Health

Helps

Disability Benefits

Helps

Child Tax Credit

Helps

Tribal Member

Helps

Milestones

2 milestones2 actions

Jun 12, 2025Senate

Read twice and referred to the Committee on Finance.

Jun 12, 2025

Introduced in Senate

Related News

1 article

Association of Health Care Journalists·about 1 year ago

Obstetric care continues to vanish from rural areas

Senate Democrats introduced the Keeping Obstetrics Local Act to boost Medicaid payments for obstetric services, including 'standby' payments for low-volume hospitals. The bill addresses the crisis where over 50% of rural hospitals no longer offer labor and delivery services.