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Title 37 - Consumer Protection Code
PRESCRIPTION DRUG DISCOUNT CARDS
Discount drug cards; regulation of sellers; penalty; exceptions; definition of "person".
(A) It is unlawful for a person to sell, market, promote, advertise, or distribute a card or other purchasing mechanism or device which is not insurance that purports to offer discounts or access to discounts from pharmacies for prescription drug purchases unless:
(1) the person is registered with the Department of Insurance for this express purpose;
(2) the card or other purchasing mechanism or device expressly states in bold and prominent type, prominently placed, that the discounts are not insurance;
(3) documentation is provided to the Department of Insurance that the discounts are specifically authorized and the person has a separate contract with each pharmacy or pharmacy chain listed in conjunction with the card or other purchasing mechanism or device; and
(4) the discounts or access to discounts offered, or the range of discounts or access to the range of discounts offered, are not misleading, deceptive, or fraudulent.
(B) A person who sells, markets, promotes, advertises, or distributes a card or other purchasing mechanism or device which is not insurance that purports to offer discounts or access to discounts from pharmacies for prescription drug purchases in this State shall designate a resident of this State as an agent for service of process and register the agent with the Secretary of State.
(C)(1) A person who violates subsection (A) is guilty of a misdemeanor and upon conviction must be imprisoned for not more than six months or fined not more than one thousand dollars, or both; for a second or subsequent violation a person must be imprisoned for not more than two years or fined not more than five thousand dollars, or both.
(D) This section does not apply to:
(1) a pharmacy holding a permit issued pursuant to Title 40, Chapter 43;
(2) eye or vision care services or glasses or contact lenses provided by an optometrist or ophthalmologist;
(3) an insured benefit administered by a health insurer, health care service contractor, or health maintenance organization; or
(4) an insured benefit administered by, or under contract with, the State of South Carolina.
(E) For purposes of this section, "person" means an individual, corporation, partnership or any other business entity, including but not limited to, a health maintenance organization, an insurance company, or a third party payor.