{"data":{"id":"us-sc/s.c.-code-ann.-38-105-30","jurisdiction":"us-sc","citation":"S.C. Code Ann. § 38-105-30","heading":"Compliance; advertising; indemnification; disclosure.","body":"(A) A wellness reimbursement program administrator must attest to the director and to the employer or employee that the wellness reimbursement program complies with all federal and state laws.\n(B) A wellness reimbursement program administrator must not cause or knowingly permit the use of any advertisement, promotion, solicitation, representation, proposal, or offer that is untrue, deceptive, or misleading.\n(C) In the event the wellness reimbursement program results in a taxable event for either the employer or the employee associated with the wellness reimbursement program, the wellness reimbursement program administrator must defend the employer and its employees against any and all claims or suits that arise out of or by virtue of the wellness reimbursement program and must indemnify the employer and its employees for a loss or judgment incurred by them as a result of the claim or suit.\n(D) Before an employer enrolls in a wellness reimbursement program, and annually thereafter at each renewal, the wellness reimbursement program administrator must provide to the employer, and the employer must provide to each participating employee, a plain language disclosure that:\n(1) states whether the wellness reimbursement program has received approval from the Internal Revenue Service or the United States Department of Labor, or whether the wellness reimbursement program relies on ERISA compliance;\n(2) advises the employer and employee that federal tax guidance in this area continues to evolve and that tax treatment of certain wellness reimbursement payments may depend on the specific design and operation of the program;\n(3) explains the indemnification obligation of the wellness reimbursement program administrator pursuant to subsection (C); and\n(4) recommends that the employer consult with independent tax or legal counsel regarding the federal tax treatment of the wellness reimbursement program.","path":["Title 38 - INSURANCE","CHAPTER 105 Wellness Reimbursement Programs"],"source_url":"https://www.scstatehouse.gov/code/t38c105.php","current_through":"2026 Session of the General Assembly","vintage":"","retrieved_at":"2026-10-25T03:49:05Z","sha256":"247f8a237ab75708957c7f718b65de773865180f74289ea6db781a053b36b5e0","source_id":"us-sc","stale":false,"prev":"us-sc/s.c.-code-ann.-38-105-20","next":"us-sc/s.c.-code-ann.-38-105-40"},"notice":"GroundRules: Original legal text. Not legal advice."}