Official title: To direct the Administrator of the Centers for Medicare & Medicaid Services to implement the Perinatal Care Alternative Payment Model Demonstration Project to test various payment models with respect to maternity care provided to pregnant and postpartum individuals, and for other purposes.
Introduced May 19, 2026 by Janice D. Schakowsky · Last progress May 19, 2026
The bill funds demonstrations to provide more comprehensive, team-based perinatal care and test payment innovations for Medicaid/CHIP enrollees—potentially improving maternal outcomes and choice—but it will require state/provider investment, could raise program costs, and may produce uneven benefits if participation or evaluation is limited.
Medicaid and CHIP pregnant and postpartum enrollees — especially high-risk women — will receive coordinated, team-based perinatal care including maternal mental health and substance‑use services, likely improving maternal outcomes.
States can test new payment models that cover nonhospital birth settings and community-based supports (e.g., doulas, perinatal workers), expanding birth setting choice and potentially lowering delivery-related costs.
The demonstration requires evaluation and reporting to Congress, giving policymakers evidence to identify effective models and consider national scaling.
State Medicaid programs and providers will face administrative burden and up-front implementation costs to design, apply for, and operate new payment models and expanded service packages.
If payment shifts occur without clear, robust quality metrics, some providers may be financially disadvantaged or reduce services—risking worsened access in underserved and rural areas.
Expanding covered services (doulas, perinatal workers, behavioral health) could increase Medicaid/CHIP spending, potentially requiring additional appropriations and imposing costs on taxpayers.
Based on analysis of 2 sections of legislative text.
Creates a FY2027–2031 Medicaid/CHIP demonstration allowing States to test alternative perinatal payment models focused on outcomes, equity, and nonclinical supports.
Creates a federal Medicaid and CHIP demonstration from FY2027–2031 that lets States test alternative payment models for maternity and perinatal care for pregnant and postpartum people enrolled in Medicaid and CHIP. The demonstration must be designed and run by HHS/CMS with broad stakeholder engagement, prioritize populations with elevated maternal morbidity and mortality, include nonclinical supports and diverse provider teams, and be evaluated and reported publicly to Congress. States apply to participate; the Secretary must assess effects on maternal health outcomes, spending, patient experience, and equity, and issue a public report within one year after the demonstration concludes.