Certain Medicaid maternity payments would have no payment limit

No payment limit would apply to the specified state-directed Medicaid payments for maternity, labor, or delivery services. It covers rural hospitals, Indian Health Service hospitals, Tribal hospitals operating under federal self-determination law, and hospitals where at least half of births in the latest available 12 months qualify. Only the payment type named in federal Medicaid regulation 42 C.F.R. § 438.6(c)(2)(iii), or a later replacement, would be covered. A birth qualifies if maternity, labor, or delivery care was paid at least partly by Medicaid, CHIP, or Medicare; provided through the Indian Health Service or a Native Hawaiian health care system; or provided to someone without minimum essential health coverage when the hospital absorbed unpaid costs other than charity care. The exemption would apply to services furnished during a rating period beginning on or after July 4, 2025.