SD| Bulletin 25-01 from the South Dakota Division of Insurance, addresses compliance issues for Enhanced Direct Enrollment Entities (EDEs) in the health insurance market. The bulletin outlines new requirements and clarifications for EDEs, health insurance issuers, and insurance producers operating in South Dakota. The bulletin gives all affected parties 90 days from the issue date to comply with these new regulations.
Key Points:
- EDEs must obtain both a third-party administrator license and an insurance producer license to operate in South Dakota.
- Health insurance issuers must appoint EDEs if they pay them any form of compensation, except for “white label” onboarding platform services.
- Insurance producers using EDEs to enroll South Dakota consumers must be licensed and appointed with the health insurance issuer, unless they are federally certified Navigators.
