SC H4305

Creates a new licensing requirement for wellness reimbursement program administrators in South Carolina, requiring approval from the Department of Insurance Director before selling or operating such programs.

Sets licensing fees at $5,000 for initial applications and $500 for renewals, with administrators required to submit two years of financial statements and maintain a surety bond.

Defines wellness reimbursement programs as self-insured medical reimbursement plans created under IRS Code Sections 105, 125, and 213(d) that are sold as ancillary products to health insurance coverage.

Imposes penalties of up to $20,000 in fines and/or two years imprisonment for operating without a license or violating chapter provisions, plus potential license revocation.

Exempts licensed independent health insurance brokers from the registration requirements but still requires them to exercise good faith and avoid deceptive practices when selling these programs.