Bill > H4305

This bill establishes a comprehensive regulatory framework for wellness reimbursement programs in South Carolina, defining them as specialized medical expense reimbursement plans created under specific Internal Revenue Code provisions. The legislation requires wellness reimbursement program administrators to obtain a license from the state's Department of Insurance, pay an initial $5,000 licensing fee and $500 for renewals, and submit detailed financial documentation and compliance evidence. Administrators must maintain accurate records, submit to periodic inspections, and file a surety bond, while also meeting strict personal and professional standards, including having no recent insurance license revocations or criminal convictions involving fraud. The bill prohibits deceptive marketing practices and requires administrators to defend and indemnify employers and employees in case of tax-related issues. Brokers are exempted from registering as program administrators but must still act in good faith and avoid misleading representations. The law imposes significant penalties for non-compliance, including fines up to $20,000, potential imprisonment, and license revocation. Additionally, the Department of Insurance must prepare a comprehensive report every three years to assess the implementation of these regulations, ensuring ongoing oversight and accountability of wellness reimbursement programs.

Business and Industry

https://www.scstatehouse.gov/billsearch.php?billnumbers=4305&session=126&summary=B