S.D. Codified Laws § 28-6-7.1
An application for or acceptance of medical assistance paid from the Department of Social Services shall operate as an assignment and subrogation by operation of law of any rights to medical support, insurance proceeds, or both, that the applicant or recipient may have for the applicant's or recipient's person, spouse, or child. This assignment and subrogation includes all claims or actions for damages, either general or special. An application for or acceptance of medical assistance from the Department of Social Services shall be deemed by an applicant or recipient and any insurance provider, including self-insurance, as a release of information authorizing the release of insurance coverage information to the Department of Social Services regardless of the policyholder. Any rights or amounts so assigned or subrogated shall be applied against the cost of medical care paid under this chapter, less all reasonable expenses, including attorney's fees incurred by the applicant or recipient to collect such support or proceeds. Any insurance provider or attorney in fact who, after notice, fails to recognize or accept an assignment or subrogation established by operation of law by this section is liable to the Department of Social Services for the full amount of medical assistance paid to or on behalf of the applicant or recipient by the department for the accident, injury, or illness for which collection is claimed or made.
SDCL 28-6-7.1