The proposed bill introduces a new chapter, Chapter 25, to Title 56 of the Idaho Code, titled the "Merit-Based Health Care Act." This legislation aims to ensure that employment and contracting decisions within Medicaid-funded health care are based on individual merit and qualifications, while prohibiting the use of state Medicaid funds to support discriminatory or ideological employment practices. The bill outlines definitions for terms such as "discriminatory hiring" and "prohibited DEI conduct," and establishes provisions regarding prohibited acts, Medicaid contractual compliance, enforcement, penalties, and a limited private right of action for health care professionals facing retaliation for refusing to engage in prohibited DEI conduct.

Key provisions include the establishment of penalties for health care providers who violate the act, with fines varying based on the size of the organization. The bill also clarifies that compliance with federal civil rights laws is not hindered by this chapter, and it includes a savings clause to ensure that any preempted provisions by federal law will not affect the remaining sections of the act. The act is set to take effect on July 1, 2026, following the declaration of an emergency.