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Idaho DOC cites population and medical contract pressures; requests per‑diem increases and contingency for new medical contract
Summary
Idaho DOC told the legislature population shifts and medical utilization have driven higher county/out‑of‑state placement and medical services costs; the agency sought supplemental funding to cover updated population projections and warned that a failed contract negotiation could raise medical costs by 30–40%.
The Idaho Department of Correction told the Joint Finance‑Appropriations Committee on Feb. 4 that population changes and medical utilization are the principal drivers of supplemental requests for county and out‑of‑state placement and for medical services.
Noah Peterson, budget and policy analyst with the Legislative Services Office, said the county and out‑of‑state per‑diem projections were updated after the original budget projections and the agency requested supplemental funding to cover the difference. For FY2026 the agency requested a $4,027,900 ongoing adjustment to make the per‑diem base reflect updated population projections.
Peterson said the medical services division is negotiating a new contract with the current medical services provider. Under the agency’s assumption of successful negotiations, the department projected a 10% increase in medical costs; if negotiations fail and the contract goes to bid, the agency estimated a 30% to 40% increase.
Senator Zetterfeld asked how county per‑diems are set. Director Josh Tewalt told the committee the Legislature sets the county per‑diem rates in Idaho Code and explained the bifurcated structure the code uses: a lower rate for stays of 1–7 days and a higher rate for stays of 8 days and longer. The department’s presentations included per‑diem figures: $57.50 for 1–7 days, $77.50 for 8+ days for county housing, and $84.45 for out‑of‑state placements, though Peterson said those amounts reflect the department’s accounting presentation rather than a new statutory change.
Peterson emphasized the medical services per‑diem supplemental assumes successful contract renegotiation; if the department must rebid the contract, costs could be substantially higher and would affect the FY2026 budget request.
The governor recommended the supplemental and ongoing adjustments as presented. Committee members asked follow‑up questions about the per‑diem calculations and the negotiated medical contract; DOC staff offered to provide additional documentation.
