This bill introduces a new section, 56-276, to Chapter 2, Title 56 of the Idaho Code, establishing a prior authorization exemption for physicians who serve as preceptors. Specifically, physicians practicing in eligible specialties—primary care, psychiatry, or obstetrics and gynecology—who complete at least 360 hours of preceptorship in a calendar year, with a minimum of 60% of those hours in a qualified rural area, will be exempt from prior authorization requirements for medically necessary services billed to Idaho Medicaid plans for a period of 12 months. The bill outlines the responsibilities of physicians in tracking and reporting their preceptorship hours, as well as the verification process by the Department of Health and Welfare.

Additionally, the bill stipulates that the Department may rescind the exemption based on a review of claims submitted by the physician, provided they notify the physician 25 days in advance. It limits the number of exemptions to 100 physicians per eligible specialty each year and mandates the Department to create rules for implementing these provisions, including a risk-weighted sampling methodology for claims. The bill also defines key terms such as "preceptorship" and "qualified rural area" to clarify the scope of the exemption. An emergency clause is included, making the act effective on July 1, 2026.