Five Things to Know
Week 7 of the 2026 Legislative Session brought continued challenges for health care — but also meaningful progress. Here are five key updates for SDAHO members:
1. A Challenging but Successful Session
This session has seen an unprecedented volume of anti-health care legislation. Thanks to strong advocacy efforts, nearly every bill that would have significantly altered health care in South Dakota has been defeated. This is because of collaboration efforts between the SDAHO advocacy team and our members, who are part of the Government Relations Team.
2. Key Bills Still in Play
- SB 190 (Parental Rights Codification): Opposed by SDAHO; passed the Senate and advanced from House State Affairs (8–5). We are working to stop it on the House floor.
- SB 49 (Genetic Data Privacy & Security): Supported by SDAHO; scheduled for House Judiciary next week.
- SB 14 (Pharmacy Practice Provisions): Supported; passed the Senate and House Health Committee unanimously.
- Compact licensure bills for physician assistants, respiratory care professionals, and athletic trainers will be heard next week. SDAHO supports all three.
3. Major Win: HB 1044 Signed into Law
HB 1044 grants the South Dakota Department of Health spending authority over the rural health transformation program. Members should watch for communication regarding RFP requirements and deadlines. SDAHO will continue to share updates to help you maximize this opportunity.
4. Budget Update: 1% Increase Recommended
After initially recommending a 0% increase, Governor Larry Rhoden is now proposing a 1% increase for schools, health care, and state employees following updated revenue estimates showing an additional $30 million in ongoing FY2027 revenue. This is a positive step for health care providers statewide.
5. Medicaid Reimbursement Discussions Ongoing
The South Dakota Department of Social Services continues work on an updated reimbursement rate methodology for inpatient and outpatient hospitals. Changes are anticipated to take effect July 1, 2026, pending approval.
We encourage members to stay informed by reviewing the full list of supported, opposed, and monitored legislation through the SDAHO Bill Tracker.
For the latest updates, visit the SDAHO State Advocacy webpage.
