1. Short title This Act may be cited as the Birth Access Benefiting Improved Essential Facility Services Act or the BABIES Act . 2. Medicaid demonstration program to improve freestanding birth center services Section 1903 of the Social Security Act ( 42 U.S.C. 1396b ) is amended by adding at the end the following: (bb) Demonstration program To improve freestanding birth center services (1) Authority The Secretary shall establish a demonstration program for the purpose of identifying ways to improve access to, and the quality and scope of, freestanding birth center services for women with a low-risk pregnancy. (2) Deadlines for centers participation criteria, prospective payment system; planning grants (A) Participation and prospective payment system deadline Not later than one year after the date of the enactment of this subsection, the Secretary shall do the following: (i) Publication of participation criteria for freestanding birth centers (I) In general Publish criteria for a freestanding birth center to be certified by a State for purposes of participating in a State demonstration program conducted under this subsection. (II) Requirements The criteria required to be published under subclause (I) shall include the following: (aa) Accreditation A freestanding birth center must have a current accreditation credential from an approved nationally recognized birth center accreditation body, as determined by the Secretary. (bb) Licensure and other requirements A freestanding birth center shall— (AA) be licensed, or otherwise approved, by the State to provide prenatal, labor and delivery, postpartum, newborn care, and other ambulatory services that are included in the State Medicaid program