When a delivery is done in the hospital, the hospital can bill for the use of the facility and all supplies needed. When a birth is done at home, no facility fees. However, it does seem as if the supplies should be covered. I would check with a couple of the major insurance carriers to see if the midwife can charge for supplies. With Medicare they would have to enroll as a supplier but I'm sure you don't have many Medicare patients delivering babies. I would probably start with BCBS, or UHC.
Michele