The bill was designed largely in response to health systems that are running their own insurance plans. Bill supporters said those organizations are trying to push patients to use their physicians and facilities.
The Senate rejected the bill with a 23-11 vote. Opponents said health insurers’ restricted networks help save customers money. Sen. Mark Johnston (R-Sioux Falls), who is an employee of Sioux Falls-based Sanford Health, said the bill was primarily backed by specialty hospitals, according to the report.
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