Health Coverage For Local Governments
A risk-sharing pool created, sponsored, and endorsed by the South Dakota Municipal League.
Current Health Pool Members!
take part in the 2026 Wellness challenge!
Simply click the picture to your left and….
- Download the myWellmark app
- From the Wellbeing tab, access WellmarkConnect powered by WebMD
- Complete the wellness assessment before November 30, 2026
- you will be automatically entered to win one of 10 $100 gift cards in time for your holiday shopping!
Taking care of your health has never been easier!
Claim charges billed through available networks
Insured lives
Entities are currently members
The year HPSD was started
Providing employee health care since 1995.
Benefit Highlights
- Self-Insured & Self-Funded
- Non-profit
- Locally Administered
- Member Owned
- Multiple Plan Options All Offered Through Wellmark BC/BS
- Protected by Reinsurance for Large Catastrophic Claims
- Meets Affordable Care Act Mandates
Enrollment process
Enrollment is Easy
Collect Claims History
or Individual Health Condition Statements
Determine Plan Parameters
Establish Rates
Submit Employee Applications
Distribute Plan Booklets & Id Cards
FAQs
Questions & Answers
The Health Pool of South Dakota was created to offer local government entities an alternative to traditional health insurance.
The pool is an insuring mechanism which spreads the risk across a large group. Premium dollars are split between BUDGET (expected claims, reinsurance and administration) and RESERVES (for catastrophic claims). The portion of reserves not used to pay claims is traditionally the insurance company’s profit, but in a pool the excess reserves are used to stabilize rates.
A self-funded plan has the look and feel of traditional plans but offers more flexibility in tailoring the benefits to meet the needs of your employees. Any excess dollars received are used by the pool to keep rates stable and enhance benefits.
Claims of less than the reinsurance retention are paid for/shared by the pool. Claims greater than the retention are paid 100% by the reinsurance company.
Yes, we will honor any deductibles and co-insurance that have already been met.
The Health Pool offers two types of prescription drug plans, a co-pay plan and a co-insurance plan. If you choose a $10 Generic; $30 Formulary; $50 Non Formulary co-pay plan the co-pays do not apply to the deductible. If the group wants the prescriptions to go toward the deductible then the group would choose a co-insurance plan and employee pays full price for prescriptions until the deductible is met, at which time co-insurance would apply and would count towards your out-of-pocket maximums.
The pool renews every January 1 and if there is to be any rate action it will happen on the anniversary date.
No, a PPO does not limit you to any doctor or hospital. It simply gives better discounts if you use a network provider. When using the network your copay is 80/20, and out-of-network is 60/40.
Members join for one year at a time. Withdrawal is accomplished by providing a 60-day written notification. Reserves, if any, are returned to the entity one year hence, and the employer is then responsible for ensuing claims.