Arkansas lawmakers are discussing potential changes to the way hospitals are reimbursed for providing birthing services. Members of the Joint Public Health Committee debated a rule change that would increase the state’s Medicaid reimbursement rate for obstetrics on Wednesday.
Republican state Rep. Mary Bentley said the current reimbursement rates are “abysmal” and have led to many hospital closures, particularly in rural areas. But she says the state shouldn’t incentivize births by cesarean section.
Lori McDonald, chief of staff at the Arkansas Department of Human Services, says hospitals across the state are currently implementing childbirth protocols ahead of the potential rate increase.
The rule changes stem from legislation passed earlier this year known as the “Healthy Moms, Healthy Babies Act.” The total cost of the plan is estimated at $76 million over the next two fiscal years.
