MedicaidReimbursementMedium impact
25-1363m 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 licensing and Medi-Cal reimbursement standards for alternative birth centers, effective January 2026. Birth centers no longer need hospital proximity but must have transfer protocols, and Medi-Cal will reimburse facility delivery costs at up to 80% of average hospital rates.
Action Required
Before January 1, 2026: Birth center providers must review and update internal policies to align with AB 55 requirements, train staff on new hospital transfer protocols and patient communication standards, and watch for further reimbursement implementation guidance from the Department of Health Care Services. Ensure compliance with new licensing standards and certification requirements for Medi-Cal reimbursement eligibility.