Two Melbourne hospitals will trial a public home birthing service as Federal Government changes to professional indemnity (PI) insurance threaten the option.

The changes, to be introduced next July, will effectively make it illegal for privately practising midwives to perform home births, potentially forcing such births underground.

Independent midwives have been unable to access PI insurance since 2001.

Under the Victorian Government's pilot program, midwives employed through the scheme will be covered by their hospital's indemnity insurance.

State Health Minister Daniel Andrews says making home births part of the public system is consistent with the Federal Government's recommendations.

"It will ensure that women opting for home births will still fall directly under the umbrella of hospital services should any complications arise," he said.

Once the pilot is finished the state government will then evaluate the model to see if it can be more widely offered through the public health system.