The New Hampshire Joint Legislative Fiscal Committee approved a request from the Sununu Administration to use $252,000 in federal pandemic aid to offset the cost of premium increases for birthing centers and home birth midwives.
The state Department of Health and Human Services said premium increases are “putting the continued operation of the centers at risk” because the facilities are required to have malpractice insurance in order to receive Medicaid reimbursement or enter into commercial provider contracts.
State officials said the rising malpractice insurance cost presents “significant hardship to the centers and to at-home midwives” at the same time that current Medicaid reimbursement rates are significantly below actual facility costs.
The department cited one center that reported a 250% increase in its premium, or more than $40,000. It said this increase and others are related to increased utilization throughout the COVID-19 health crisis, as more families are choosing not to have births in a hospital setting.
Under the proposal, providers would be eligible for up to 60% of the increase in their premium.
The funds used would come from the state’s share of monies from the federal American Rescue Plan Act (ARPA). No state funds would be used.
The funding, which would be available through June of next year, must still be approved by the Executive Council.
In August, Gov. Chris Sununu signed a separate measure increasing the Medicaid reimbursement rate for birthing centers and midwives for the first time in several years.
Topics New Hampshire
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