Best and cheapest health insurance in South Dakota
Cheapest health insurance companies in South Dakota
Sanford sells the cheapest health insurance in South Dakota, with Silver plans starting at $444 per month.
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Affordable health insurance in South Dakota
Company |
Cost
| |
|---|---|---|
| Sanford | $444 - $871 | |
| Avera | $525 - $1,030 | |
| Wellmark | $714 - $725 | |
- Sanford has the cheapest health insurance in 50 of South Dakota's 66 counties.
- Wellmark has high average rates, but it's the cheapest option if you live in Rapid City, SD.
Best health insurance companies in South Dakota
Wellmark is the best health insurance company in South Dakota.
Wellmark is part of Blue Cross Blue Shield, which is one of the best health insurance companies in the country. Most doctors and hospitals take Blue Cross Blue Shield plans, which usually makes them easy to use.
Wellmark has an impressive record for good customer service, even though it doesn't yet have a HealthCare.gov rating in South Dakota.
Wellmark has 63% fewer complaints than an average company its size, and Wellmark of SD has even fewer complaints about its health insurance.
Both companies sell plans in South Dakota under the "Wellmark" brand.
Wellmark is also the most popular health insurance company in South Dakota. Over half of the health insurance plans in the state come from Wellmark.
Best-rated health insurance companies in South Dakota
Company |
Editor rating
|
ACA rating
|
|---|---|---|
| Wellmark | NA | |
| Sanford | 4.5 | |
| Avera | 4.0 |
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Lowest overall costs: Avera
Avera's health insurance plans have the lowest overall costs for medical care.
You'll pay less overall for your medical care with a plan from Avera, compared to a plan from Sanford or Wellmark. That's because Avera has the lowest cap on the portion you'll pay for your medical bills each year, called your out-of-pocket maximum.
With Avera, you won't pay more than an average of $7,879 each year for medical care. That's $700 cheaper than Sanford's average out-of-pocket maximum and over $1,000 less than Wellmark's. It's still high, though, so you should make sure you have savings to pay that much in case you are seriously hurt or sick.
How much does health insurance cost in South Dakota?
SD health insurance is $715 per month, on average. But the average cost is $92 per month if you get income-based discounts.
- The plan tier you choose will influence your health insurance quotes. Gold plans cost the most and pay for the highest share of your medical bills.
- Your age will also affect your health insurance costs, because rates increase as you get older. In South Dakota, a 40-year-old pays an average of 28% more than a 21-year-old for the same coverage.
Get affordable health insurance in South Dakota
In South Dakota, you could pay $92 per month, on average, for health insurance if you get discounts based on your income.
About 85% of people in South Dakota who shop on HealthCare.gov for an insurance plan are eligible to get discounts based on their income, called subsidies. About a third of people who qualify for subsidies in South Dakota pay $10 or less per month for a plan.
To qualify, you have to make between $15,060 and $60,240 each year if you're single, or between $31,200 and $124,800 if you're a family of four. People with lower incomes will see bigger savings. However, if you qualify for Medicaid, you won't be eligible for subsidies from HealthCare.gov.
Subsidies can be used to buy a Bronze, Silver or Gold plan from any company. You can't use subsidies on Catastrophic plans.
Cheap South Dakota health insurance plans by city
Sanford sells the cheapest health insurance in Sioux Falls, SD.
Sanford also has the cheapest health insurance plan in most of South Dakota's other major cities, like Aberdeen, Brookings and Watertown. But if you live in Rapid City, Wellmark has the cheapest Silver plan.
Cheapest health insurance by SD county
County | Cheapest Silver plan | Monthly rate |
|---|---|---|
| Aurora | Sanford Individual Simplicity Standardized | $603 |
| Beadle | Sanford Individual Simplicity Standardized | $615 |
| Bennett | Wellmark Standard Silver EPO | $714 |
| Bon Homme | Sanford Individual Simplicity Standardized | $603 |
| Brookings | Sanford Individual Simplicity Standardized | $615 |
Cheapest Silver plan with rates for a 40-year-old
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Best health insurance by level of coverage
The best health insurance plan for you depends on which plan tier meets your unique needs.
For example, if you have a chronic disease, you might want to consider a Gold plan. Although Gold plans have high monthly costs, you pay less for doctor care, prescriptions and hospital visits.
By contrast, if you're in good health, you're probably better off with a Silver plan. It has affordable monthly rates and low out-of-pocket costs.
Gold plans: Best for people with ongoing health issues
| Gold plans pay for about 80% of your medical care. |
Gold plans typically have the highest monthly costs. But with a Gold plan, you'll pay lower out-of-pocket costs, such as your deductible, copays and coinsurance.
If you have an ongoing illness, you may benefit financially from a Gold plan. That's because Gold plans often have deductibles and overall spending limits that are thousands of dollars lower than other plan tiers. And Gold plans don't cost much more than Silver plans in South Dakota, so it might be worthwhile to consider one even if you're mostly healthy.
Gold plans cost an average of $761 per month in South Dakota.
Silver plans: Best for most people
| Silver plans pay for about 70% of your medical care. |
Silver plans are the best option for most people because they strike a good balance between affordable monthly rates and moderate out-of-pocket costs. If you're not sure what level of health insurance you should pick, start by comparing Silver plans to see if they meet your needs.
Silver plans are also the only plan tier that qualifies for an extra discount that can make the cost of your medical care cheaper.
In South Dakota, Silver plans cost $715 per month, on average.
Bronze plans: Best for healthy people with emergency savings
| Bronze plans pay for about 60% of your medical care. |
You'll typically pay low monthly rates with Bronze, but you'll also have high out-of-pocket costs if you need medical care. You should only consider a Bronze if you're in good health and you have savings to pay the plan's deductible.
But certain types of medical care, like annual checkups and many vaccines, don't count toward your deductible. You won't pay much, if anything, for these types of health care, even if you haven't met your deductible.
Bronze plans cost $546 per month, on average, in South Dakota.
Catastrophic plans: Best if you can't afford anything else
Catastrophic plans are the lowest level of health insurance. They have low rates, but they require you to pay a large amount of your medical bills yourself. Catastrophic plans are only available if you're under 30 or if you qualify for a hardship exemption.
It rarely makes sense to buy a Catastrophic plan given the high deductibles and low coverage levels. If you have a low income, you should see if you qualify for Medicaid. You could also consider a regular health plan with marketplace subsidies if you're struggling to afford health insurance.
Catastrophic plans in South Dakota cost an average of $389 per month.
Cheap or free health insurance in South Dakota if you have a low income
If you can't afford health insurance, you might qualify for Medicaid. And you might be able to get cheaper medical care if you buy a Silver plan.
Medicaid in South Dakota
You might qualify for Medicaid, a type of free or low-cost health insurance, if you have a low income. You have to make below roughly $21,000 as a single person or below $44,000 for a family of four to qualify in South Dakota.
You also qualify for Medicaid if you're part of a federally-recognized Native American tribe, regardless of how much you make.
Use cost-sharing reductions for cheaper medical care
If you can afford health insurance but still struggle to pay your share of medical bills, consider buying a Silver plan. Silver plans are the only plan tier eligible for a discount that lowers your medical costs, called a cost-sharing reduction (CSR).
To qualify, you have to make between roughly $15,060 and $37,650 per year as a single person or $31,200 and $78,000 per year as a family of four. You probably also qualify for rate subsidies, too, which lower the cost of your monthly bill.
Are health insurance rates going up in SD?
Between 2023 and 2024, the average cost of health insurance in South Dakota got cheaper across all plan levels.
Gold plan rates dropped by 11%, while Silver plans saw a 10% average drop. Bronze plans are 6% cheaper, and Catastrophic plans saw a 5% decrease.
Tier | 2023 | 2024 | Change |
|---|---|---|---|
| Catastrophic | $410 | $389 | -5% |
| Bronze | $583 | $546 | -6% |
| Silver | $792 | $715 | -10% |
| Gold | $852 | $761 | -11% |
Monthly costs are for a 40-year-old.
South Dakota marketplace insurance, also called Affordable Care Act (ACA) or "Obamacare" insurance, refers to plans that you buy on HealthCare.gov
No matter what level of coverage you buy (Catastrophic, Bronze, Silver or Gold), you'll have coverage for at least 10 health situations.
- Doctor visits
- Preventive and wellness care
- Emergency care
- Hospital stays
- Prescription medications
- Lab services
- Pregnancy, maternity and newborn care
- Pediatric care
- Mental health and substance use care
- Rehab services
But you'll probably still have to pay some of your medical bills yourself. The difference in the plan tiers is how much they cost each month and how much they pay for your medical care. Gold plans have the highest rates and pay the highest share of your bills, which means you get cheaper medical care. If you buy a Bronze or Catastrophic plan, you will pay less each month. But the plan will also pay less for your medical care, so you'll have to pay a bigger share.
Average cost of health insurance by family size in South Dakota
The more people you insure on your health plan, the more you'll pay each month. In South Dakota, a single parent with one child pays an average of $1,143 per month for a Silver plan. Two married 40-year-olds will pay $1,430 per month on average.
You can add $428 to either of these rates for each child in your household under the age of 15 to get a rough estimate of your family's health insurance costs.
Family size | Average monthly cost |
|---|---|
| Individual | $715 |
| Individual + Child | $1,143 |
| Couple, age 40 | $1,430 |
| Family of three | $1,858 |
| Family of four | $2,286 |
Averages based on a Silver plan for 40-year-old adults and children who are under age 15.
COBRA insurance in South Dakota
COBRA might be a cheaper option than marketplace insurance in South Dakota.
That's not the case in most areas of the country, where COBRA tends to be expensive.
COBRA costs an average of $674 per month for a single person in South Dakota, while a Silver plan from HealthCare.gov costs $715 per month, on average. If you need health insurance while you're between jobs, compare the rates for COBRA and a plan from HealthCare.gov to see which is a better option.
COBRA lets you keep the insurance plan you had with your job when you leave, are fired or retire.
Coverage can last up to a year and a half after you leave, though you might be able to keep the coverage for up to three years in some cases. But you will have to pay the full price for your plan. Once you're no longer employed, your employer won't chip in to help pay the monthly rate anymore.
Short-term health insurance in South Dakota
Short-term health insurance can help you bridge gaps in coverage, but the plans might not cover much.
You can buy short-term health insurance for up to three months, with the option to extend it for one more month. That gives you a total of four months of coverage.
Pros of short-term health insurance in South Dakota
Cons of short-term health insurance in South Dakota
Frequently asked questions
How much does health insurance cost per month in South Dakota?
Health insurance costs $715 per month in South Dakota on average for a 40-year-old with a Silver health plan. You may pay less if you're younger or if you have a lower plan tier.
What is the income level to qualify for Medicaid in South Dakota?
To qualify for Medicaid in South Dakota, you have to make less than roughly $21,000 for a single person or $44,000 for a family of four. If you earn a low income, but aren't eligible for Medicaid, you will likely qualify for ACA marketplace subsidies, which lower the cost of a private health insurance plan.
Does South Dakota have Blue Cross Blue Shield?
Wellmark of South Dakota is part of the Blue Cross Blue Shield Association. The Wellmark Standard Silver EPO is the cheapest Silver health plan for roughly a quarter of South Dakotans.
Methodology
ValuePenguin used public use files (PUFs) from the Centers for Medicare & Medicaid Services (CMS) to find average rates for 2024 health insurance plans by age, county, plan tier and family size for the state of South Dakota. Plans and providers for which county-level data was included in the CMS Crosswalk file were used in our analysis; those excluded from this dataset may not appear. COBRA info is from KFF.
Average rates are for a 40-year-old and a Silver plan unless another age or plan tier is specified. Rates for plans with subsidies are from CMS data for everyone who shopped during 2024 open enrollment and who got advanced premium tax credits (APTCs).
ValuePenguin rated each insurance company based on its average rates, plan offerings, customer service and unique features.
Info about COBRA is from KFF. Other sources include the National Association of Insurance Commissioners (NAIC) and S&P Global Capital IQ.
Editorial note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.