The bill H. 4305 aims to establish a "Wellness Reimbursement Program" in South Carolina by adding Article 25 to Chapter 71, Title 38 of the South Carolina Code of Laws. It defines key terms related to wellness reimbursement programs, including "wellness reimbursement program," "broker," "end-user," and "qualified medical expense." The bill prohibits certain actions by wellness reimbursement program companies, such as conducting business without proper registration, defining themselves inaccurately, and profiting from third-party supplemental insurance offerings. It also mandates that these companies must be fully funded by employee contributions and cannot outsource their administrative responsibilities.

To operate as a wellness reimbursement program, companies must register with the Secretary of State, which involves submitting an application and paying a fee of $5,000 for initial registration and $500 for renewal. The bill outlines penalties for non-compliance, including administrative fines of up to $20,000 for failing to register. Additionally, brokers are exempt from the registration requirement, allowing them to facilitate partnerships between wellness reimbursement programs and employee groups without being classified as employees of those programs. The act will take effect upon approval by the Governor.