South Dakota Mini-COBRA Health Insurance Continuation

South Dakota law allows individuals to continue their group health insurance coverage after job loss, reduced hours, or other qualifying events, regardless of the employer’s size. These continuation rights are provided under a combination of statutes, including §§ 58-18-7.5 and related provisions, and help ensure access to coverage during employment transitions.

Both insured and self-insured group plans are subject to these requirements, which apply to medical, surgical, and hospital expense coverage. Eligible individuals must be notified of their right to elect continuation coverage and the steps needed to maintain that coverage.

South Dakota's Mini-COBRA Law

South Dakota’s continuation of coverage law requires group health plans to offer extended health insurance coverage for up to 18 months following the loss of eligibility. This includes self-insured programs and group health insurance policies that provide hospital, surgical, or major medical benefits. Coverage applies to the employee and eligible dependents, unless the group plan itself is terminated and replaced with comparable coverage. These rules apply to plans issued by commercial insurers, nonprofit service corporations, HMOs, and similar entities operating within the state.

• Employer Size: Applies to all group health plans, including those issued by insurance companies, HMOs, and nonprofit entities, regardless of employer size.
• Eligibility: Employees and dependents whose coverage was terminated for reasons other than non-payment of premium by the individual or plan termination by the employer.
• Qualifying Events: Job loss, reduction in hours, or other loss of eligibility under the group plan.
• Coverage Duration: Up to 18 months of continuation coverage; extended up to 29 months in cases of disability as determined under the Social Security Act.
• Premium Payment: Individuals must pay the full premium amount directly. Non-payment by the employer constitutes termination of the policy and ends the continuation option.
• Election Period: Insurers must provide notice of continuation rights at the time coverage is lost.
• How to Apply: Eligible individuals should follow the instructions included in the continuation notice provided by the insurer or plan administrator to elect coverage and submit premiums within the stated timeframe.

Alternative Low Cost Medical Plans in South Dakota

Continuing an employer plan in South Dakota with Mini-COBRA is around $734/mo, per individual. If COBRA is unavailable or is outside of your budget, you do have affordable other options for health coverage. See below.

The cost of health insurance is determined by your age and state of residency.