IdahoS 14102026 regular legislative sessionSenateWALLET

MEDICAID – Adds to existing law to provide legislative approval for the Department of Health and Welfare to submit a state plan amendment regarding change in encounter rate due to change in scope of services.

Sponsored By: STATE AFFAIRS COMMITTEE

Signed by Governor

MEDICAID

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

How clinics apply for rate changes

Clinics should give written notice 60 days before changing services; no penalties apply for these filings. Run the new services for six straight months, then file by the last day of the third month after. You may submit only one scope-based application per fiscal year. Include a narrative of changes, a full six‑month cost and encounter report, and any extra data the department reasonably requests. The department must act within 90 days, pausing the clock for up to two weeks if it asks for more records. It sends a draft rate; you have 60 days to review; the final rate issues 45 days later. You may appeal the final rate within 30 days.

Medicaid clinic rates adjust for new services

The department adjusts FQHC and rural clinic PPS rates when service scope changes. A scope change means the type, intensity, duration, or number of services changes; adding, dropping, or expanding services counts. Higher costs alone do not count as a scope change. To qualify, the change must shift cost per visit by at least 4.5% against the current PPS rate. The final rate is effective the first day the change began, and the state reconciles payments back to that date, including any not handled by managed care.

New Medicaid plan steps by 2026

The Department must submit needed Medicaid state plan amendments by October 1, 2026. The law takes effect upon passage. The prior rule in IDAPA 16.03.26 Section 307.03 ends on October 1, 2026. Clinics that began scope changes before that date may finish under the old rule.

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Sponsors & Cosponsors

Sponsor

  • STATE AFFAIRS COMMITTEE

    Affiliation unavailable

Cosponsors

  • Julie VanOrden

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 33 • No: 0

Senate vote 3/26/2026

Senate Floor Vote

Yes: 33 • No: 0

Actions Timeline

  1. Signed by Governor on 04/02/26 Session Law Chapter 308 Effective: 04/02/2026; 07/01/2026 IDAPA Sunset Clause - SECTION 2

    4/2/2026
  2. Reported out of Committee with Do Pass Recommendation, Filed for Second Reading

    4/1/2026Senate
  3. Read third time in full – PASSED - 33-0-2

    3/26/2026Senate
  4. Read second time; filed for Third Reading

    3/25/2026Senate
  5. Reported out of Committee with Do Pass Recommendation; Filed for second reading

    3/24/2026Senate
  6. Reported Printed; referred to Health & Welfare

    3/19/2026Senate
  7. Introduced; read first time; referred to JR for Printing

    3/18/2026Senate

Bill Text

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