This bill amends Chapter 22, Title 56 of the Idaho Code by adding a new section, 56-2208, which establishes a framework for legislative approval of state plan amendments related to changes in encounter rates for federally qualified health centers (FQHCs) and rural health clinics (RHCs) due to changes in the scope of services they provide. The Department of Health and Welfare is required to submit these state plan amendments by October 1, 2026. The bill outlines the criteria for adjusting payment rates based on changes in service scope, including a minimum threshold for cost changes and a structured application process for rate adjustments.

Additionally, the bill declares that certain administrative rules in IDAPA 16.03.26 will be null and void after October 1, 2026, allowing FQHCs and RHCs that initiated changes in scope before this date to complete their processes under the previous rules. The bill also includes provisions for notification of planned changes, application reviews, and appeals regarding rate adjustments, ensuring that the final payment rates are effective from the date of implementation of the service changes. An emergency clause is included, making the act effective immediately upon passage and approval.