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Bill

SB 233

prohibit the assessment of certain administrative fees or penalties related to the provision of care by an out-of-network provider.

2026 Regular Session Introduced by Sydney Davis and 2 co-sponsors

SB 233 prohibits healthcare providers from charging administrative fees or penalties to patients who receive care from out-of-network providers.

Health and Human Services Deferred to the 41st legislative day , Passed, YEAS 5, NAYS 2 S.J. 15
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Bill Summary · SB 233

Legislative bill overview

SB 233 prohibits healthcare providers from charging patients administrative fees or penalties when they receive care from out-of-network providers. The bill aims to prevent surprise billing situations where patients face additional costs beyond their insurance coverage for seeking necessary medical care outside their insurance network.

Why is this important

Out-of-network care often results in higher patient costs, and additional administrative fees compound financial burden during medical emergencies or when specialty care isn't available in-network. This protection is particularly relevant in rural states like South Dakota where limited provider networks may force patients to seek out-of-state care.

Potential points of contention

  • Provider revenue impact: Healthcare providers may argue the prohibition reduces their ability to offset costs associated with out-of-network claims processing and coordination
  • Insurance network design: Insurers and networks might contend the bill interferes with their preferred provider arrangements and network incentive structures
  • Definition clarity: The bill's scope regarding what constitutes "administrative fees or penalties" may be ambiguous, creating enforcement and compliance challenges

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

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