About 81,500 people did not have health insurance in South Dakota as of 2019. That’s according to data from the Kaiser Family Foundation (KFF) and represents just under 10% of the state’s population. When KFF analyzed the uninsured data again in 2021, they found that of the people without health insurance here, about 47,300 qualify for marketplace coverage.
Under the Affordable Care Act (ACA), marketplace coverage is the kind of health insurance that has to meet the requirements of the country’s current healthcare law. That means it has to cover pre-existing conditions and a set of 10 essential health benefits. These include, among other things, preventive care, maternity care, hospitalization and prescription drugs.
The ACA also created advance premium tax credits, aka subsidies, to help people with low to moderate incomes afford health insurance. Subsidies lower the monthly premium cost of health insurance for people earning between 100% and 400% of the federal poverty level.
Kaiser Family Foundation estimates that nearly half (47%) of the uninsured in South Dakota who qualify for marketplace coverage could get a bronze plan for free thanks to subsidies.
The nonprofit also looked at health insurance premiums in South Dakota for 2021. They calculated that the average lowest cost plans by category were $454 a month for a bronze plan, $609 for a silver one and $652 for gold. These averages don’t take into account any tax credits.
When we looked at options on our marketplace, we found that a 40-year-old in Aberdeen, SD, with an income of $37,000 a year could buy a bronze plan for $160.41 a month. That includes subsidies.
South Dakota has at least two insurers offering marketplace plans in 2021, including Avera and Sanford.
Sources
Kaiser Family Foundation, “Health Insurance Coverage of the Total Population”
Kaiser Family Foundation, “Marketplace Eligibility Among the Uninsured: Implications for a Broadened Enrollment Period and ACA Outreach” (January 27, 2021)
Kaiser Family Foundation, “Average Marketplace Premiums by Metal Tier, 2018-2021”
Kaiser Family Foundation, “Insurer Participation on the ACA Marketplaces, 2014-2021” (November 23, 2020)