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Congress·In Committee·9 months ago

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

Also known as: Keeping Obstetrics Local Act

Legislative Progress

✓ Filed
Review
Senate
House
President

Impacts

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

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

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.

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Source Information

Document Type

Congressional Bill

Official Title

Keeping Obstetrics Local Act

Bill NumberS 2059
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Finance.

Sponsor

Cosponsors

(18)
D: 16I: 2

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.