The proposed legislation, known as the "Idaho Dental Plan Transparency Act," introduces a new chapter to Title 41 of the Idaho Code, aimed at enhancing transparency in dental health care service plans. It establishes definitions for key terms such as "dental health care service plan," "dental loss ratio" (DLR), and "earned premium." The act mandates that dental health care service plans file annual DLR reports with the Idaho Department of Insurance, detailing the percentage of premium funds spent on patient care. Starting in 2027, these reports must be submitted by July 31 each year, and the department is required to publish the findings by January 1 of the following year in a publicly accessible format.

Additionally, the legislation outlines the specific components that must be included in the DLR calculation, such as incurred claims and unpaid claim reserves, while explicitly excluding various administrative costs and overpayments from the numerator. The act emphasizes the importance of public access to this information, allowing for comparisons among different dental health care service plans. The bill is set to take effect on July 1, 2026, following the declaration of an emergency.