South Carolina House Bill H4305

South Carolina 2025-2026 Regular Session

• Introduced: 4/3/25
• Refer: 4/3/25

Caption

Wellness reimbursement program

Impact

The legislation introduces significant changes in how wellness reimbursement programs function within South Carolina. It requires these programs to be fully funded by employee contributions and to operate as licensed entities, potentially limiting the number of businesses able to provide such services. Furthermore, the bill lays out specific requirements to ensure that all practices are transparent and accountable, ultimately improving the safety and reliability of wellness programs available to employees across the state. Failure to comply with these regulations can lead to substantial fines and penalties.

Summary

House Bill 4305 aims to regulate wellness reimbursement programs in South Carolina by establishing a new article in the state code, defining pertinent terms, and outlining prohibitions against certain practices by these programs. The bill specifically mandates that any wellness reimbursement program wishing to operate in the state must register with the Secretary of State, including the submission of an application and payment of associated fees. This initiative reflects a proactive approach to oversee the wellness industry and protect consumers from potential malpractices related to wellness reimbursements.

Contention

While the bill appears to serve a protective function for consumers, there are concerns about its potential impact on the availability of wellness programs. Critics may argue that the registration and regulatory requirements could impose undue burdens on smaller companies that cannot easily absorb the associated costs or comply with the strict regulations. Additionally, the lack of clarity on how these regulations may impact innovative wellness solutions has raised concerns among stakeholders, suggesting a need for ongoing dialogue between legislators and industry participants to ensure that the intent of the law benefits employees without stifling growth in the wellness sector.