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 discriminatory hiring practices and the use of state Medicaid funds to support ideological or discriminatory 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, and penalties for violations.

Key provisions include the establishment of penalties for health care providers that engage in discriminatory hiring or prohibited DEI conduct, with fines varying based on the size of the provider. Additionally, the bill allows for a limited private right of action for health care professionals who face retaliation for refusing to participate in prohibited DEI conduct. The legislation also emphasizes compliance with federal civil rights laws and Medicaid requirements, ensuring that any conflicting provisions are severed while maintaining the integrity of the remaining law. An emergency clause is included, making the act effective on July 1, 2026.