The BABIES Act aims to expand access to birth centers and test new payment models for maternity care. The bill provides two main programs: first, it creates federal grants of $300,000 to $500,000 for up to 15 birth centers per year from 2025 through 2029 to help with startup costs, facility improvements, and accreditation in underserved areas, with $5 million authorized in total funding. Second, it establishes a Medicaid demonstration program where up to six states will test alternative payment systems for birth center services, with participating birth centers required to meet specific accreditation and safety standards. The demonstration program runs for four years starting in 2026, with the federal government providing enhanced Medicaid matching funds and $24 million in total funding. The bill requires annual reports to Congress comparing birth outcomes and costs between participating birth centers and traditional maternity care providers, aiming to improve quality and access to maternity services for low-income women with uncomplicated pregnancies.
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