South CarolinaH 4305126th General Assembly (2025-2026)House

AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING CHAPTER 105 TO TITLE 38 ENTITLED "WELLNESS REIMBURSEMENT PROGRAMS" SO AS TO DEFINE TERMS, PROHIBIT CERTAIN ACTS BY WELLNESS REIMBURSEMENT PROGRAMS, REQUIRE REGISTRATION INCLUDING AN APPLICATION AND FEES, EXEMPT BROKERS FROM REGISTERING, AND TO PROVIDE FINES FOR VIOLATIONS OF THE CHAPTER, AMONG OTHER THINGS.

Sponsored By: William G. "Bill" Herbkersman (Republican)

Signed by Governor

Summary

Wellness reimbursement program

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 3 costs, 0 mixed.

New licensing and costs for administrators

Starting May 19, 2026, anyone who runs a wellness reimbursement program in South Carolina must be licensed. The application uses the Director’s form and costs $5,000 up front, then $500 each year to renew, and must include two years of financial statements. Administrators must either follow federal ERISA rules or file an IRS or Labor Department approval letter, and keep a surety bond on file. The Director can deny a license for recent insurance license revocations within five years or for fraud‑related crimes, and must find the applicant competent and trustworthy. Licensed administrators must keep complete records, face inspection at least every three years, and pay the cost of any examination.

Tough penalties for breaking the rules

Beginning May 19, 2026, the Director of Insurance enforces these rules. Operating without a required license is a misdemeanor, punishable by up to $20,000 in fines, up to two years in jail, or both; other licenses may also be revoked. The Director can suspend or revoke an administrator’s license for violations or deception, or fine up to $1,000 per offense instead. Anyone who violates the chapter can face up to $20,000 in fines or two years in jail, and the Director may issue rules and keep fine revenue.

Insurer wellness programs are excluded

Starting May 19, 2026, these Chapter 105 protections do not apply to wellness programs that insurers or self‑insured group health plans offer to their own enrollees. Those programs follow other laws, but they are not subject to this chapter’s licensing, disclosure, or advertising rules.

Clear notices and protections for employers and workers

Starting May 19, 2026, administrators cannot use untrue or misleading ads. They must give employers a plain‑language notice before enrollment and every year, and employers must share it with each participating worker. The notice explains IRS or Labor approval status, warns tax treatment may change, explains the administrator’s duty to defend and indemnify you, and suggests getting independent tax or legal advice. If a program causes a taxable event, the administrator must defend the employer and workers and pay any losses or judgments. Licensed independent brokers do not have to register as administrators to earn commissions, but they must avoid deceptive ads and act in good faith.

Sponsors & Cosponsors

Sponsor

  • William G. "Bill" Herbkersman

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 326 • No: 28

House vote • 5/13/2026

(Wellness reimbursement program)Concur in Senate Amendments

Yes: 107 • No: 0

Senate vote • 5/6/2026

(Wellness reimbursement program)2nd Reading

Yes: 43 • No: 0

House vote • 5/1/2025

(Wellness reimbursement program)Passage of Bill

Yes: 88 • No: 14

House vote • 5/1/2025

(Wellness reimbursement program)Passage of Bill

Yes: 88 • No: 14

Actions Timeline

  1. Effective date 05/19/26

    6/5/2026legislature
  2. Act No. 215

    6/3/2026legislature
  3. Signed By Governor

    5/19/2026Governor
  4. Ratified R 196

    5/14/2026legislature
  5. Roll call Yeas-107 Nays-0

    5/13/2026House
  6. Concurred in Senate amendment and enrolled

    5/13/2026House
  7. Debate adjourned

    5/12/2026House
  8. Read third time and returned to House with amendments

    5/7/2026Senate
  9. Scrivener's error corrected

    5/7/2026legislature
  10. Roll call Ayes-43 Nays-0

    5/6/2026Senate
  11. Read second time

    5/6/2026Senate
  12. Amended

    5/6/2026Senate
  13. Committee report: Favorable Labor, Commerce and Industry

    2/26/2026Senate
  14. Committed to Committee on Labor, Commerce and Industry

    5/6/2025Senate
  15. Recalled from Committee on Banking and Insurance

    5/6/2025Senate
  16. Referred to Committee on Banking and Insurance

    5/6/2025Senate
  17. Introduced and read first time

    5/6/2025Senate
  18. Scrivener's error corrected

    5/5/2025legislature
  19. Read third time and sent to Senate

    5/2/2025House
  20. Unanimous consent for third reading on next legislative day

    5/1/2025House
  21. Roll call Yeas-88 Nays-14

    5/1/2025House
  22. Read second time

    5/1/2025House
  23. Amended

    5/1/2025House
  24. Committee report: Favorable with amendment Labor, Commerce and Industry

    4/30/2025House
  25. Referred to Committee on Labor, Commerce and Industry

    4/3/2025House

Bill Text

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