1% of health insurance tax could fund medical education amid Idaho doctor shortage

March 30, 2026 - 20:10

Idaho lawmakers are advancing a novel proposal to tackle the state's growing physician shortage by creating a stable funding source for medical education. The plan, detailed in Senate Bill 1420, would impose a 1% assessment on the premiums of most health insurance plans sold within the state.

The revenue generated, estimated at up to $30 million annually, would be directed to the Idaho Medical Education Program. This program is designed to support Idaho residents training to become physicians, with a focus on increasing the number of primary care doctors and psychiatrists practicing in underserved areas of the state.

Proponents argue that this dedicated funding is critical for expanding medical training opportunities. The goal is to "grow our own" healthcare workforce by helping Idaho students afford medical school in exchange for a commitment to return and practice in the state's rural and critical access communities. Supporters emphasize that investing in medical education now is a long-term strategy to improve healthcare access for all Idahoans.

The legislation has moved forward from the Senate floor to the House for further consideration. If enacted, the assessment would apply to a wide range of health plans, though specific exemptions, including for certain state employee plans, are part of the current bill's framework. The debate continues as legislators weigh the need for more healthcare providers against the potential impact on insurance costs.