South Dakota Reverses Course on ObamaCare

health carePIERRE, S.D. – Gov. Dennis Daugaard announced today that the state of South Dakota will not operate a state health insurance exchange but will maintain control of insurance regulation in South Dakota.

Unless the federal healthcare law is repealed, a health insurance exchange must be operated in every state by 2014. The federal government will directly operate and fund exchanges in those states choosing not to operate state-run exchanges. South Dakota joins other states that have chosen not to run their own exchanges.

“After extensive research and analysis, it has become very apparent that operating our own exchange will simply not work for South Dakota,” Gov. Daugaard stated.

A cost analysis completed by an independent company found annual operating costs of such a state exchange would range from $6.3 million to $7.7 million, or $2 to $3 per person, per month.

“The federal law requires exchanges to be self-sustaining by 2015, which means we would either have to charge a fee to South Dakota citizens using the exchange, or increase taxes, neither of which I am willing to do,” the Governor said.

Gov. Daugaard added: “I oppose the federal healthcare law because it is a large expansion of government that does little about the rising cost of health care. My first hope is that the next President and Congress will repeal this ill-advised law. In the absence of that, our state must work to ensure that even as the federal government implements this law, the state retains control over the regulation of health insurance. I believe South Dakotans want our own citizens doing the regulation. We do not want to cede control of that to the federal government.”

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  1. Bob Ellis says:

    Nice to see that Gov. Daugaard finally decided to start acting like a Republican and stop playing ball with tyranny-even if it is after receiving a cool $6.9 million in taxpayer funded largess, and having undermined the states’ case against ObamaCare (

    It’ll be interesting to see what happens from here. Though this unconstitutional abomination has been upheld by the US Supreme Court, some don’t believe the federal government has the juice, if push comes to shove, to force all the states to participate in this (

    Of course, when we have weak-kneed “Republicans” defending our freedom…

  2. lora says:

    Not so fast. This may be worse that allowing a State run Exchange. If Daugaard used his Executive Order power to usher in a FEDERAL FECILLITATED EXCHAGNE (FFE)..we are screwed. That would mean that SD has partnered with the Feds to set up an Exchange…and there is NO state autonomy no matter what Van H says…we just allowed the Feds to be our pimp as we mandate horrific concessions of our freedoms. If the Governor said “Go to heck” to the Feds, then the Feds would set up a Federal Exchange (FE)…that would be the Republican platform action. There is no funding for the Federal Exchange (FE) and to get the funding would mean defeat for ObamaCare. How? Funding for a FEDERAL Exchange would have to go through Kristie Noem and the rest of congress first…and I would hope it would be killed there. However…if he set up an Federal Facillitated Exchange (FFE)…partnering with the Feds and the State to set one up..then Im upset. That would mean he nullified our only hope of ever getting rid of ObamaCare by not stripping away its would mean he felt sorry for the ObamaCare mistake that didn’t fund the Federal Exchange (FE) and he plans on partnering with the Feds to correct that…watch …I plan on writing hi a letter for verification…but if he passed an Executive order for a FFE, then he plans on furthering ObamaCare. I hope I am wrong about this….

    • Bob Ellis says:

      That’s an important distinction. I hope you’re wrong, but given the South Dakota “Republican” establishment’s willingness to capitulate to tyranny, I wouldn’t be surprised.

  3. charliewalksonwater says:

    daugaard is a mistake that conservatives should correct next time around.

    It appears to me that this republican party in SD is the epitome of the good ol’ boy network. When I hear of the SD republican party I picture old men in top hats sitting in a dark room smoking cigars and laughing at the proletariat.