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Bill

SD 989

An Act to save lives by preventing unscrupulous medical referral restrictions by profit-driven health care networks

194th Legislature (2025-2026) Introduced by Mark Montigny

Bill prohibits health networks from restricting patient referrals based on financial incentives rather than clinical quality, potentially increasing patient choice but raising insurance costs.

House concurred
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Bill Summary · SD 989

Legislative bill overview

Bill SD 989 aims to prohibit health care networks and insurance plans from restricting patient referrals to specific providers based on financial incentives or profit motives. The bill would require that medical referrals be based solely on clinical quality, patient preference, and medical necessity rather than contractual arrangements designed to limit costs through provider networks.

Why is this important

Patients could gain greater choice in selecting specialists and providers regardless of network restrictions. This addresses concerns that some insurance networks steer patients toward cheaper providers rather than those best suited to their medical condition, potentially affecting care quality and outcomes.

Potential points of contention

  • Insurance industry costs: Broader referral networks could increase insurance premiums by eliminating cost-control mechanisms that narrow networks currently provide
  • Implementation complexity: Defining what constitutes an improper "profit-driven" restriction versus legitimate network management based on quality metrics or negotiated rates requires detailed regulatory guidance
  • Market structure concerns: May conflict with how health maintenance organizations (HMOs) and integrated delivery systems legally operate under existing federal law, requiring broader regulatory changes
  • Definition ambiguity: The bill's language about "unscrupulous" restrictions is subjective and could lead to legal challenges around what practices are actually prohibited

Compiled from official sources — confirm details with the bill’s official record.

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