Certain Nonprofit Agricultural Organizations Exempt from State Insurance Laws

Recently, the South Dakota legislature passed Senate Bill 87, which exempts certain health benefit plans sponsored by nonprofit agricultural organizations from state insurance regulation, including health benefit mandates.

Effective July 1, 2021, the exemption applies to self-funded plans sponsored by nonprofit agricultural organizations meeting particular criteria that contract with a TPA licensed in South Dakota. Among other criteria, the nonprofit agricultural organization must be domiciled in South Dakota, in existence for at minimum 25 continuous years prior to issuing health benefits to its members and must be created primarily to promote the development of rural communities and the economic stability and sustainability of farmers in this state.

Nonprofit agricultural organizations that sponsor self-funded group health plans should be aware of these developments.

Senate Bill 87 »