This bill amends Chapter 2, Title 56 of the Idaho Code by adding a new section, 56-276, which establishes a prior authorization exemption for eligible practitioners who serve as preceptors. Specifically, practitioners who provide at least 360 hours of preceptorship in a calendar year, with a minimum of 60% of those hours in qualified rural or underserved areas, will qualify for a 12-month exemption from prior authorization requirements for medically necessary services billed to Idaho Medicaid plans. Eligible practitioners are responsible for tracking and reporting their preceptorship hours to the Department of Health and Welfare, which will verify the hours and grant the exemption at the start of the next calendar year.

The bill also outlines the conditions under which the Department of Health and Welfare may rescind the exemption, including a review of claims submitted by the practitioner. Additionally, it limits the number of exemptions to 100 eligible practitioners per specialty each year and mandates the department to create rules for implementing the provisions, including a risk-weighted sampling methodology for claims. The bill defines key terms such as "eligible practitioner," "eligible specialty," and "preceptorship," and declares an emergency for the act to take effect on July 1, 2026.