South Dakota Code § 3-6E-1

Benefits plan for employees--Self-funded or group health insurance--Flexible benefit plan
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The bureau may establish a benefits plan for plan-eligible employees of the state. The plan may either be self-funded or established as a group health insurance program. The plan may provide for group health coverage against the financial cost of hospital, surgical, pharmacy, and medical treatment and care, and any other coverage or benefits the human resources commissioner determines is appropriate and desirable. The human resources commissioner may include a flexible benefit plan which allows an employee to choose the employee's own benefits or levels of coverage.

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