Require the submission of medical, dental, and pharmaceutical claims data to the Division of Insurance and to establish a health care data system.
HB 1102 would move South Dakota’s health care data collection and oversight function from the Department of Health to the Division of Insurance and create a new health care data system centered on medical, dental, and pharmaceutical claims data. The bill requires insurers and third-party administrators to submit claims data for fully insured plans, certain public employee plans, and federal health plans, and it allows inclusion of self-funded employer-sponsored plans if the employer opts in. It also directs the Division of Insurance to contract with the Department of Social Services to include Medicaid claims data in the system.
The bill sets out broad purposes for the data system, including health care planning, policy evaluation, research, quality improvement, access measurement, cost monitoring, public health support, and transparency. It requires the division to adopt rules governing data elements, confidentiality, collection procedures, analysis, and public dissemination, and it authorizes limited and public-use data sets on the division’s website so long as individuals cannot be identified. The bill also exempts several types of insurance from reporting requirements, including accident, disability, long-term care, workers’ compensation, vision, and short-term limited duration coverage.
HB 1102 would repeal existing statutes in chapter 1-43 that currently assign the Department of Health responsibility for the comprehensive health data system, replacing that framework with a new chapter 58-17K structure under the Division of Insurance. It would expand the state’s authority to collect claims data from insurers and third-party administrators, establish civil penalties of up to $1,000 per violation for noncompliance, and require rulemaking on confidentiality and public access. The bill would also preserve HIPAA-related privacy limits and exclude certain insurance products and health facility disclosures that would conflict with existing law.
The available voting history suggests the bill did not advance in a contentious floor vote, as it was tabled by a 12-0 vote on February 7, 2025. No committee transcript excerpts were provided, so there is no recorded debate to indicate strong support or opposition in the materials supplied. The unanimous tabling vote suggests either procedural delay, unresolved policy questions, or a desire for further review rather than a divided partisan outcome.
The main points of potential contention are privacy, administrative burden, and the scope of mandatory reporting. Employers with self-funded plans are given an opt-in mechanism, which indicates sensitivity to concerns about forcing private plan data into a state database. Another likely issue is whether the Division of Insurance should oversee the system instead of the Department of Health, since the bill repeals the existing health data statutes and shifts authority to a different agency. Stakeholders such as insurers, third-party administrators, employers, and health care providers may differ on the costs of compliance, the usefulness of public data release, and the extent to which claims data can be shared without risking identification of individuals.