Overview
South Dakota has been active in regulating prescription drug pricing and transparency. The state enacted a law to prohibit pharmacy benefit managers from prohibiting or penalizing a pharmacist for providing cost-sharing information on the amount a covered individual may pay for a particular prescription drug. The legislature also passed legislation that requires health carriers to provide prospective enrollees with drug formularies and detailed plan descriptions that explain plan coverage limitations and their financial impact on enrollees (e.g., co-insurances, out-of-pocket expenses, etc.).
In healthcare markets, the state’s antitrust legislation provides that nonprofit hospitals must provide notice to the state attorney general for any mergers, acquisitions, or related transactions. The state also limits the duration of noncompete clauses in physician employment contracts to two years after the date of termination and within a specified geographic area. South Dakota also promotes telemedicine with mandated coverage parity and cost-sharing parity for telehealth services.
See below for an overview of existing South Dakota state mandates. Click on citation tab for detailed information of specific statutes (click link to download statute text).
State Action
Latest Legislative Session: 1/10/2023 - 3/27/2023 (2023 term). *Current session bill updates are ongoing. Check back weekly for updates.
HB 1003 – South Dakota
Introduced: 2021 Status: Enacted
An act to revise certain provisions regarding credit for reinsurance. Credit must be allowed when the reinsurance is ceded to an assuming insurer with its head office or domicile in a reciprocal jurisdiction.
HB 1005 – South Dakota
Introduced: 2020 Status: Enacted
An Act to revise certain provisions regarding the use of telehealth technologies.
HB 1017 – South Dakota
Introduced: 2020 Status: Enacted
An Act to provide for certain insurer corporate governance disclosure requirements.
HB 1029 – South Dakota
Introduced: 2022 Status: Inactive / Dead
An Act to revise the definition of telehealth for purposes of health insurance policies.
HB 1087 – South Dakota
Introduced: 2023 Status: Inactive / Dead
Prohibit restrictive employment contracts for health care workers
S.D. Codified Laws § 58-17H-31. Calculation of time period for determination for prospective and retrospective reviews: Utilization Review and Benefit Determinations – South Dakota
Introduced: Status: Enacted
For purposes of calculating the time periods within which a determination is required to be made for prospective and retrospective reviews, the time period within which the determination is required to be made begins on …
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S.D. Codified Laws § 58-17H-38. Activities of nonregistered utilization review organizations prohibited: Utilization Review and Benefit Determinations – South Dakota
Introduced: Status: Enacted
A utilization review organization may not engage in utilization review in this state unless the utilization review organization is properly registered.
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S.D. Codified Laws § 58-17H-40. Urgent care requests–Written procedures required for receipt and determination of requests: Utilization Review and Benefit Determinations – South Dakota
Introduced: Status: Enacted
Each health carrier shall establish written procedures for receiving benefit requests from covered persons or their authorized representatives and for making and notifying covered persons or their authorized representatives of expedited utilization review and benefit …
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S.D. Codified Laws § 58-17H-41. Insufficient information for determination–Notice and statement of necessary information: Utilization Review and Benefit Determinations – South Dakota
Introduced: Status: Enacted
If the covered person or, if applicable, the covered person’s authorized representative has failed to provide sufficient information for the health carrier to make a determination, the health carrier shall notify the covered person or, …
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S.D. Codified Laws § 58-17H-42. Insufficient information for determination of prospective urgent care requests: Utilization Review and Benefit Determinations – South Dakota
Introduced: Status: Enacted
Insufficient information for determination of prospective urgent care requests. If the benefit request involves a prospective review urgent care request, the provisions of § 58-17H-41 apply only in the case of a failure that is …
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In re: Suboxone Antitrust Litigation (State of Wisconsin, et al. v. Indivior Inc, et al.) – Alabama, Alaska, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Utah, Virginia, Washington, West Virginia, Wisconsin
District Court: E.D. Pennsylvania Status: Pending
In September 2016, 35 state attorneys general and the District of Columbia brought a multi-district case against pharmaceutical manufacturer Indivior, MonoSol RX et al., alleging …
Additional Resources
STATE BUDGET
South Dakota operates on an annual budget cycle. The governor submits a proposed budget in December and the legislature typically adopts a budget in March. The fiscal year runs from July 1 through June 30 and is referred to by the year in which it ends.
STATE LEGISLATURE
The South Dakota Legislature begins its session on the second Tuesday of January, lasting 40 working days in odd-numbered years, and 35 days working days in even numbered years. The state has 35 Senators, and 70 members of the House of Representatives. Both Senators and Representatives are elected to 2-year terms, and are limited to serving four consecutive 2-year terms in a particular chamber, but there is no limit on the number of non-consecutive terms. Bills do not carry over from year to year.