Labor & Employment

This bill updates Idaho Medicaid rules to increase transparency and oversight of payments to healthcare providers, particularly those serving people with disabilities. It establishes specific payment rates based on Medicare equivalents for most services, requires annual cost surveys with audits for residential habilitation providers, and mandates that providers spend allocated funds on direct care worker wages or face potential penalties. The legislation also introduces value-based payment options for certain providers, sets reimbursement percentages for different hospital types, and requires the state to reduce general fund spending on hospital payments by specified amounts. Additionally, it declares certain existing administrative rules null and void as of July 1, 2026, and requires all future provider rate changes to receive legislative approval through the budget process.

S 1221 amends Idaho Code Section 59-1302 to revise the definition of "employee" for the state's public retirement system (PERSI). Specifically, it changes the threshold for who qualifies as an employee eligible for retirement benefits, clarifying that individuals working fewer than 20 hours per week are no longer automatically considered employees under the system. This directly affects Idaho public employees whose work hours fall below this threshold, ensuring only those meeting the revised criteria are counted for retirement benefit eligibility. The change aims to align the definition with current employment patterns and streamline administrative processes for the retirement system.