By Kevin Joseph, LHC Student Assistant

Background
Established to provide health care coverage to low-income people, Medicaid is a state-delivered health insurance program jointly financed by the states and federal government. Medicaid covers over 80 million people nationwide, accounting for approximately a fifth of all healthcare spending nationally. The structure of the Medicaid program allows for state Medicaid agencies to decide (with some parameters) what populations and services are covered (Kaiser Family Foundation, 2024). Currently, pregnant people are eligible to receive Alabama Medicaid if their monthly income does not exceed 146% of the federal poverty limit, or $1,905 monthly (Alabama Medicaid, n.d.c). If the income limit is satisfied, Alabama Medicaid covers maternity and prenatal care services (Alabama Medicaid, n.d.a). Prenatal care can include physical exams, laboratory tests, and nutritional supplements to improve pregnancy health outcomes, such as reducing birth defects (NIH, 2017). However, the Medicaid agency must approve your application first, which can take weeks according to the agency (Alabama Medicaid, n.d.b.). In 2023, there were 57,858 recorded births in the state of Alabama according to natality information from CDC Wonder (2025). However, only 71% of those births received prenatal care in the first trimester of pregnancy. These metrics fare worse for pregnancies where the mother has a high school education/GED or less (61.8%), pregnancies where the mother is not White (66.1%), or pregnancies whose delivery was insured by Medicaid (60.3%) (CDC, 2025). Healthy People 2030 set a national target of 80.5% of pregnancies receiving “early and adequate” prenatal care by the end of the decade (DHHS, n.d.).
Proposed Legislation
HB89 and SB102, companion bills, of the 2025 Alabama Legislature Regular Session would require the Alabama Medicaid Agency to presumptively cover ambulatory prenatal care based on the determination of a medical provider for up to 60 days before a Medicaid application is accepted, if the income limit is met. It would require the provider making the presumptive eligibility determination to notify Alabama Medicaid within 5 business days of the determination and inform the person to apply for Medicaid no later than the last day of the following month after the determination. The new rule would begin October 1, 2025 and has a built-in “sundown” clause of October 1, 2028, which would end the initiative unless otherwise extended. HB89 is cosponsored by Representatives Lands (D-Madison County), Rafferty (D-Jefferson County), Drummond (D-Mobile County), Hall (D-Madison County), Ensler (D-Montgomery County), Clarke (D-Mobile County), Collins (R-Morgan County), Ross (R-Marshal County), DuBose (R-Jefferson, Shelby, and St. Clair Counties), and Wilcox (R-Mobile County). SB102 is cosponsored by Senators Coleman-Madison (D-Jefferson County), Figures (D-Baldwin and Mobile Counties), Kelley (R-Calhoun and Talladega Counties), Beasley (D-Barbour, Bullock, Henry, Houston, Macon, and Russell Counties), Smitherman (D-Smitherman), Albritton (R-Baldwin, Escambia, Mobile, and Washington Counties), and Stutts (R-Colbert, Frankli, Lawrence, and Limestone Counties).
Impact
If HB89/SB102 were to pass, pregnant people in Alabama who are eligible for Medicaid may receive more frequent and/or earlier prenatal treatment, leading to improved maternal and birth outcomes. Data from Healthy People 2030 indicates that only 74.9% of people receive “early and adequate” prenatal care nationally, with decreased frequency among racial/ethnic minorities and people who have received less education (mimicking trends in Alabama) (DHHS, n.d.). Tables 1 and 2 below show the prevalence of Alabama Medicaid payment for 2023 deliveries in the state among varying levels of maternal education and different maternal race. The following proportions were calculated using data from the CDC Wonder Natality data in 2023 (2025). Considering the disparities in Medicaid delivery payments by maternal race and education, an increased number of these births that receive adequate and early prenatal care with presumptive Medicaid eligibility may not only improve maternal and baby health outcomes overall but also reduce disparities in these outcomes.
Table 1. Proportion of Births by Maternal Race covered by Alabama Medicaid, 2023 CDC Wonder Natality Data
Maternal Race | Percentage of Deliveries Covered by Medicaid |
---|---|
American Indian or Alaska Native* (n=184) | 59.8% |
Asian* (n=870) | 21.6% |
Black or African American* (n=15762) | 65.0% |
Native Hawaiian or Other Pacific Islander* (n=106) | 62.2% |
White (n=39690) | 36.7% |
More than one race* (n=1226) | 52.0% |
Table 2. Proportion of Births by Maternal Education covered by Alabama Medicaid, 2023 CDC Wonder Natality Data
Maternal Education | Percentage of Deliveries Covered by Medicaid |
---|---|
8th grade or less* (n=2705) | 83.9% |
9th to 12th grade, no diploma* (n=5022) | 84.0% |
High school graduate or GED* (n=19447) | 63.5% |
Some college, no degree* (n=10206) | 44.9% |
Associate degree* (n=5092) | 24.6% |
Bachelor’s degree* (n=9396) | 9.1% |
Master’s degree (n=4565) | 3.8% |
Doctorate or Professional degree* (n=1274) | 2.4% |
*For some educational attainment and racial categories, the number of people having certain payors for delivery is low (less than 10) that the data totals are suppressed due to risk of identification. These percentages of Medicaid payment are estimates, as the true total number of deliveries may be slightly different.
Fiscal notes on HB89/SB102 estimate the increase coverage would cost about $1 million annually in fiscal years 2026, 2027, and 2028, with $726,300 in federal funding and $273,700 in state funds. However, Representative Marilyn Lands, the primary sponsor on HB89, believes the bill will save money in net through the reduced hospital and healthcare expenses associated with better health maternal and baby health outcomes (Gann, 2025). Due to the range of services prenatal care can entail, general cost-effectiveness analyses are difficult to conduct and further research is needed.
Next Steps
HB89 and SB102 have both been read for second time in the second House, passing each respective chamber unanimously. If both chambers pass their counterpart’s bill, Governor Kay Ivey can sign the bill into law. If you want to make your voice heard on this or future legislation, click here to identify your elected officials. Don’t know what to say? Check out this guide from the American Civil Liberties Union on drafting a letter to your government officials.
References
Alabama Medicaid. (n.d.a). Covered Services. https://medicaid.alabama.gov/content/4.0_programs/4.1_Covered_Services.aspx
Alabama Medicaid. (n.d.b). Frequently Asked Questions. https://medicaid.alabama.gov/content/9.0_Resources/9.5_FAQ_Pages/9.5.2_FAQ_Applying.aspx
Alabama Medicaid. (n.d.c). Qualifying for Medicaid. https://medicaid.alabama.gov/content/3.0_Apply/3.2_Qualifying.aspx
Centers for Disease Control and Prevention (CDC), National Center for Health Statistics. (Accessed March 25, 2025). Natality Information. [Natality for 2016-2023 (expanded)]. U.S. Department of Health & Human Services. https://wonder.cdc.gov/natality-expanded-current.html
Department of Health and Human Services (DHHS), Office of Disease Prevention and Health Promotion. (n.d.) Increase the proportion of pregnant women who receive early and adequate prenatal care – MICH-08. https://odphp.health.gov/healthypeople/objectives-and-data/browse-objectives/pregnancy-and-childbirth/increase-proportion-pregnant-women-who-receive-early-and-adequate-prenatal-care-mich-08.
Gann, H. (2025, February 13). Alabama House passes presumptive Medicaid for pregnant mothers but only until 2028. https://www.al.com/politics/2025/02/alabama-house-passes-presumptive-medicaid-for-pregnant-mothers-but-only-until-2028.html
Kaiser Family Foundation. (2024, May 28). Medicaid 101. https://www.kff.org/health-policy-101-medicaid/?entry=table-of-contents-introduction
National Institutes of Health (NIH). (2017, January 31). What is prenatal care and why is it important? https://www.nichd.nih.gov/health/topics/pregnancy/conditioninfo/prenatal-care