MEDICAID – Adds to existing law to provide legislative approval for the Department of Health and Welfare to submit a state plan amendment regarding change in encounter rate due to change in scope of services.

This bill requires legislative approval for the Idaho Department of Health and Welfare to adjust Medicaid payment rates for Federally Qualified Health Centers and Rural Health Clinics when their scope of services changes. It establishes a process where clinics must notify the department 60 days before implementing service changes and submit a rate adjustment application after six months of full implementation, requiring a minimum 4.5% cost increase to qualify. The legislation sets specific timelines for department review and allows clinics to appeal final rate decisions, while also repealing certain existing administrative rules effective October 1, 2026.