MedicaidReimbursementMedium impact
25-1364m 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 1, 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: OB-GYN practices and birth centers must review and update internal policies to align with AB 55 requirements. Train staff on new hospital transfer protocols and patient communication standards. Update billing systems to accommodate new Medi-Cal reimbursement structure for birth center deliveries at up to 80% of hospital rates. Monitor Department of Health Care Services for additional reimbursement implementation guidance.