Several health care related laws passed during the 2026 South Dakota Legislative Session are now in effect. While many of the changes are administrative in nature, they include important updates affecting our members across South Dakota. The South Dakota Association of Healthcare Organizations (SDAHO) encourages members to review these changes and ensure policies, procedures, and operational practices reflect the new state requirements.
While House Bills 1043 (Health Care Recruitment Assistance Program funding) and House Bill 1044 (Rural Health Transformation Program funding) went into effect during the legislative session, the following legislation became effective July 1, 2026:
Key Health Care Laws Now In Effect
- Prior Authorization Reform (HB 1199): Requires health insurers to annually review prior authorization requirements and eliminate those for services routinely approved, helping reduce administrative burden on providers.
- Claims Denial Recoupment (HB 1292): Limits health carriers to an 18-month window to recoup, recover, or retroactively deny previously paid claims, providing greater financial certainty for health care providers.
- Critical Access Hospitals (HB 1250): Adds Critical Access Hospitals to the definition of community-based providers for comprehensive rate modeling analyses.
- EMS Workforce Support (HB 1023 & HB 1024): Expands ambulance staffing and operator eligibility while providing liability protections for RNs and LPNs serving on ambulance crews, supporting EMS workforce needs across the state.
- Health Care Workforce & Licensure: Establishes interstate licensure compacts for physician assistants, respiratory therapists, athletic trainers, and social workers to strengthen workforce recruitment and mobility. (HB 1028, HB 1146, HB 1148, HB 1149).
What Hospitals Need to Know
Hospital leaders should work with appropriate departments to ensure:
- Administrative and revenue cycle teams understand the new prior authorization and claims recoupment requirements.
- EMS leaders are aware of expanded staffing flexibility and liability protections.
- Human resources and credentialing teams review new interstate licensure compact opportunities to support recruitment efforts.
- Critical Access Hospitals monitor future rate modeling changes under the updated community-based provider designation.
- Clinical leaders review new requirements related to forensic medical examinations, where applicable.
For additional details on these and other health care related bills passed during the 2026 Legislative Session, view SDAHO’s 2026 Legislative Brief available to SDAHO members.
