Sanford Health main campus

Sanford Health is threatening to drop Wellmark as an accepted health insurance provider, setting up a potential dispute that could have major implications for thousands of its patients.

The Sioux Falls-based health care system on Monday announced it has issued Wellmark a notice of contract termination as negotiations between the two organizations near an impasse. The notice sets a July 1, 2027, termination date, giving the health system and insurer about eight months to reach a new agreement.

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