Availability of short-term health insurance in South Dakota

Yes. As of 2024, at least three insurers are offering short-term health insurance in South Dakota.

In December 2020, the South Dakota Division of Insurance finalized new regulations to remove the six-month cap and nonrenewability rules that were in place prior to the rule change. Under these regulations, plans are allowed to follow the federal rules that the Trump administration finalized in 2018, they can have initial terms of up to 364 days, and total duration, including renewals, of up to 36 months.

But insurers have the option to impose stricter limits, and some of the short-term plans available for purchase in South Dakota are limited to a maximum duration of no more than 12 months.

Short-term health insurance in South Dakota is available to residents who meet insurers’ underwriting guidelines.

Short-term health insurance plans usually include blanket exclusions for pre-existing conditions, so these types of plans may not be adequate for someone who needs medical care for ongoing or pre-existing conditions.

If you’re in need of health insurance coverage in South Dakota and open enrollment for ACA-compliant plans (November 1 – January 15) has ended, check if you are eligible for a special enrollment period that would allow you to enroll in an ACA-compliant major medical plan. There are a variety of qualifying life events that trigger a special enrollment period.

If you’re eligible to enroll in an ACA-compliant plan, you can visit the exchange/Marketplace (HealthCare.gov) to apply. These plans are purchased on a month-to-month basis – meaning you can terminate coverage at anytime – so you can enroll in a plan even if you only need coverage for a few months before another policy takes effect (with a premium subsidy if you’re eligible).

A licensed agent or broker can provide information on coverage options and costs for short-term and other kinds of health insurance and determine which policies might fit your needs. Some things to keep in mind about short-term plans are the allowable plan durations (some of South Dakota’s insurers generally cap their plans at shorter durations than the maximum the state allows), whether the insurer offers guaranteed renewability, and the specific benefits the plan covers.

Pay attention to things such as whether the plan covers outpatient prescription drugs (most short-term health insurance plans do not, but some do), and whether it imposes specific dollar limitations.

There may be situations when enrolling in an ACA-compliant plan is impossible. In those scenarios, a short-term plan might be an appropriate option, such as:

• If you missed open enrollment for ACA-compliant coverage or your employer’s healthcare plan, and do not have a qualifying life event that would trigger a special enrollment period.
• You’ve lost coverage from an employer and can’t afford COBRA or an ACA-compliant plan in the Marketplace to bridge the gap until you’re employed again at a job that will provide health benefits. The Alabama Department of Insurance notes that short-term plans are a potential temporary solution in this situation, but they caution that the plans are not the same sort of coverage that’s provided by ACA-compliant plans available through HealthCare.gov.
• If you are newly employed and have a waiting period until you can be covered by your new employer’s health insurance plan.
• If you will soon be eligible for Medicare and don’t have access to any other coverage in the meantime.
• If you’re not eligible for Medicaid or a premium subsidy in the exchange, an ACA-compliant plan might be unaffordable.

Since 2020, South Dakota follows the federal rules regulating short-term health insurance.

South Dakota statute requires insurers who provide short-term health insurance to provide a disclosure informing consumers that the plan does not cover pre-existing conditions, and does not count as minimum essential coverage under the ACA.