US SB1598

Authorizes $5 million (FY 2026-2030) for HRSA grants of $300,000-$500,000 each to up to 15 accredited birth centers annually for facility construction, renovation, equipment purchases, and state licensure activities, prioritizing health professional shortage areas for maternity care

Establishes a Medicaid demonstration program requiring HHS to publish participation criteria for freestanding birth centers within one year, including accreditation requirements, state licensure, care coordination with hospitals and clinics, and staffing with licensed midwives and physicians

Awards planning grants of up to $3 million total to 6 states to develop prospective payment systems for birth center services, with 4-year state demonstration programs launching within 2 years of enactment

Creates enhanced federal matching payments for states participating in the demonstration, covering prenatal, labor and delivery, postpartum, and newborn care for Medicaid-eligible women with low-risk pregnancies at freestanding birth centers

Appropriates $27 million total ($3 million for planning grants, $24 million for demonstrations at $6 million/year for 4 years) and requires annual reports to Congress on clinical outcomes, transfer rates, cesarean rates, and cost comparisons with traditional hospital maternity care