MedicaidReimbursementMedium impact
25-1362m Assembly Bill 55 Expands Access to Birth Centers and Modernizes Medi-Cal Reimbursement
Health Net·CA · OB-GYN·Reimbursement
Effective date
Jan 1, 2026
We identified it
Jun 20, 2026
Summary
Assembly Bill 55 updates California's birth center licensing and Medi-Cal reimbursement standards effective January 2026, removing hospital proximity requirements and establishing new comprehensive perinatal care standards. Birth centers will receive facility delivery reimbursement at up to 80% of average hospital rates under new licensing requirements.
Action Required
By January 1, 2026: Billing teams at birth centers must update policies to align with AB 55 requirements and train staff on new transfer protocols. Monitor Department of Health Care Services for updated Medi-Cal reimbursement implementation guidance. Ensure birth center certification compliance for Medi-Cal reimbursement eligibility.