MERIT-BASED HEALTH CARE – Adds to existing law to establish the Merit-Based Health Care Act.

This bill establishes the Merit-Based Health Care Act in Idaho, which requires health care providers participating in Medicaid to base employment and contracting decisions on individual merit and professional qualifications rather than ideological or discriminatory practices. The law specifically prohibits the use of state Medicaid funds to support diversity, equity, and inclusion initiatives, bias training, or other policies that consider race or sex in hiring, promotion, or compensation decisions. Providers must comply with these requirements as a condition of their Medicaid agreements, and violations can result in civil penalties ranging from $5,000 to $100,000 depending on the size of the organization and the number of violations. The bill also includes a limited private right of action allowing health care professionals to sue if they face retaliation for refusing to participate in prohibited DEI conduct.