South Dakota Expands Medicaid Bringing Health Coverage to More than 52,000 State Residents

The Biden-Harris Administration encourages newly eligible South Dakotans to apply for coverage.

Thanks to South Dakota’s historic expansion of Medicaid today under the Affordable Care Act (ACA), the U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), announced that more than 52,000 South Dakotans – including many members of South Dakota Tribes– are eligible for comprehensive health care coverage.

“Tens of thousands of South Dakotans now have an opportunity to obtain health care coverage, and the peace of mind it provides, as a result of Medicaid expansion,” said HHS Secretary Xavier Becerra. “The comprehensive health insurance that Medicaid provides can be life changing for American families. I urge the remaining states yet to adopt expansion to do so.”

“Medicaid is a lifeline for millions of people, and a cornerstone for achieving health equity – particularly for underserved communities,” said CMS Administrator Chiquita Brooks-LaSure. “Today, South Dakota becomes the 39th state D.C. in adopting the ACA’s Medicaid expansion. We urge the more than 52,000 newly eligible South Dakotans to apply for coverage, and we look forward to working with more states to expand Medicaid and continue the historic improvements in getting people insured under the Biden-Harris Administration.” 

Tomorrow (July 1, 2023), thousands of South Dakotans who applied for coverage this month will begin to receive full Medicaid benefits, including access to primary, preventive, and emergency care, as well as substance abuse treatment and prescription drug benefits. In implementing its Medicaid expansion, South Dakota will be able to offer all adults aged 19 to 64 with incomes under 138 percent of the federal poverty level ($20,120) comprehensive health coverage through Medicaid.

In addition to becoming the 39th state, along with D.C., in adopting the ACA’s Medicaid expansion, South Dakota now receives additional federal funding thanks to President Biden’s American Rescue Plan (ARP). The ARP incentivized states that have not yet expanded Medicaid coverage by offering a five-percentage point increase in the regular federal matching rate for most Medicaid services for two years. States that expand Medicaid also qualify for the 90% federal matching funds currently available through the ACA for services provided to certain Medicaid expansion enrollees, which means that the Federal government pays 90% of the costs and the state pays 10%.  

Medicaid, together with the Children’s Health Insurance Program (CHIP), remain the largest source of health care coverage in the U.S., connecting nearly 94 million individuals to a range of critical health services. If all remaining states were to expand their Medicaid programs under the Affordable Care Act (ACA), as many as 4million more un- or under-insured individuals could  enroll in high-quality, affordable health care coverage through Medicaid. Specifically, the number of Black adults eligible for Medicaid would be almost five times greater, and six times greater for Hispanic adults.  

For additional information on South Dakota’s expansion of Medicaid, click here and filter for “South Dakota.” For more details on the potential impact of Medicaid expansion in non-expansion states, visit this report from the Health & Human Services Assistant Secretary for Planning & Evaluation.