Senate Democrats Propose Bill to Increase Payments for Rural Maternity Care

This bill has garnered support from various healthcare provider groups, indicating a widespread concern over maternal care accessibility in rural areas.

Senate Democrats, led by Ron Wyden from Oregon, has introduced a Bill to increase Medicaid payments to rural and safety-net hospitals for maternity care. 

The Keep Obstetrics Local Act's legislation responds to hospitals closing their obstetrics services due to financial strain, staffing challenges, and declining patient volumes. 

This bill has garnered support from various healthcare provider groups, indicating a widespread concern over maternal care accessibility in rural areas.

Data from the Center for Healthcare Quality and Payment Reform highlighted that over half of rural hospitals in the United States do not offer labor and delivery services. 

Furthermore, according to 2022 cost reports, more than a third of those that do were reportedly losing money on patient care services.

“The impact of closing obstetrics services is severe. Too many rural communities have become maternity deserts, leaving families without access to care,” Wyden stated in a recent announcement. 

He emphasized the need to stabilize rural hospitals to keep their labor and delivery wards operational.

Key Provisions of the Bill

The Keep Obstetrics Local Act proposes several changes to improve the financial viability of maternity care services. 

Specifically, the bill suggests raising the base rate for maternity, labor, and delivery services to 150% of the Medicare rate. Hospitals serving a high proportion of Medicaid, Medicare, and uninsured patients would qualify for this increase. 

The legislation also seeks to boost payment benchmarks for various assistance programs and outlines a revenue floor to support low-volume eligible hospitals.

Supporting the Bill, Senator Maggie Hassan from New Hampshire, said, “No matter where they live, expectant moms deserve access to high-quality care to protect their health and the health of their babies.” 

She pointed out that the bill would provide crucial resources to rural hospitals, enabling them to maintain their labor and delivery units and improve postpartum care access for women after childbirth.

The bill further includes provisions for workforce development in maternal care, expansions of healthcare coverage for mothers under Medicaid and the Children’s Health Insurance Program (CHIP), and requires public notification of any hospital obstetrics unit closures. 

Additionally, it calls for studies on the costs associated with maternity care, reinforcing the need for ongoing evaluation of healthcare delivery in this sector.

Tackling Maternal Mortality Rates

The legislation also addresses the alarming maternal mortality rate in the US, which stands at 22.3 deaths per 100,000 live births, significantly higher than in other high-income nations. 

This issue is particularly acute among Black, American Indian, and Alaska Native women, who face worse outcomes. Support from provider groups such as America’s Essential Hospitals, the Catholic Health Association, and the National Rural Health Association underscores the urgency of addressing these disparities.

“As more maternity wards in New Hampshire and states across the country close, this important legislation will help give rural hospitals the resources they need to support labor and delivery units and provide high-quality care that women deserve,” Hassan stated.

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