MERIT-BASED HEALTH CARE – Adds to existing law to establish the Merit-Based Health Care Act.

This bill establishes the Merit-Based Health Care Act in Idaho, which requires healthcare providers participating in Medicaid to make employment and contracting decisions based on merit and professional qualifications rather than ideological or discriminatory practices. The law defines specific prohibited actions, including the use of state Medicaid funds for diversity, equity, and inclusion training or policies that focus on race or sex-based preferences, while explicitly allowing compliance with federal civil rights laws and legitimate clinical training. Healthcare providers who violate these provisions could face civil penalties ranging from $5,000 to $100,000 depending on company size, and the attorney general can investigate complaints from health care professionals who claim retaliation for refusing to participate in prohibited DEI activities.