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proposing and submitting to the voters at the next general election an amendment to the Constitution of the State of South Dakota, repealing the requirement to provide expanded medicaid.
This proposal asks South Dakota voters to remove a constitutional requirement that the state provide Medicaid coverage to adults earning up to 138% of the federal poverty level—a requirement that was added to the state constitution in 2022. If approved by voters, the state would no longer be obligated to offer this expanded Medicaid coverage, giving lawmakers the option to reduce or eliminate the program.
require the reimbursement of therapy using equine movement through the state medicaid program.
South Dakota's Medicaid program would now cover equine therapy (therapeutic activities using horses) when provided by licensed physical therapists, occupational therapists, or speech-language pathologists. The state Department of Social Services must submit paperwork to the federal government by August 2026 to formally add this coverage to the Medicaid program.
make an appropriation to increase the rate of payment for federally qualified health centers.
This bill provides $8 million in funding ($4 million state money and $4 million in federal matching funds) to increase what the state pays federally qualified health centers for medical services they provide. The higher payment rates will take effect on June 30, 2026, and any unused money will be returned to the state fund.
revise the types of community-based providers for purposes of state funded services.
This bill expands the types of health care and social service providers eligible to receive state funding (including Medicaid and federal grants) by adding critical access hospitals and Federally Qualified Health Centers to the list of covered community-based providers. The bill also gives the secretaries of the Department of Social Services and Department of Human Services flexibility to add other provider types they deem appropriate without needing legislative approval.
create a taskforce to study the creation of Indian medicaid managed care entities in the state.
South Dakota is creating a new taskforce to study whether Indian tribes in the state should establish their own managed care organizations to deliver Medicaid services to tribal members. The taskforce will include representatives from federally recognized tribes, state agencies, the legislature, healthcare providers, and the federal Bureau of Indian Affairs, and will be supported by the Department of Social Services.
create the Developmental Disability Service Delivery Committee.
South Dakota is creating a new nine-member Developmental Disability Service Delivery Committee to review and improve the state's Medicaid waiver programs that provide home and community services to people with intellectual and developmental disabilities. The committee will examine how providers are reviewed and accredited, gather feedback from people with disabilities and their families, and recommend changes to make the system more efficient and less burdensome for service providers. This is a new committee with no changes to existing law—it establishes a formal way to evaluate and improve disability services going forward.
provide for the study of statewide transit needs and the economic impacts of public transit, and to make an appropriation therefor.
South Dakota will fund a $125,000 study through the Department of Transportation to examine the state's public transit needs and whether public transit affects workforce availability, healthcare costs, and Medicaid spending. The department must complete the study and report its findings to the Legislative Research Council by November 30, 2026.