Senator Davis proposes the following amendment (SR-4305.CEM0001S):

Amend the bill, as and if amended, SECTION 1, by striking Section 38-105-10(4)(b) and (c) and inserting:

  (b) that has issued a contract to provide services and pay claims pertaining to reimbursements of qualified medical expenses relating to Section 213(d) of the Internal Revenue Code; and
  (c) that is intended, created, marketed, and sold as an ancillary product to an individual or group health insurance coverage or self-insured group health plan; and
  (d) the reimbursement funds are not held by a third party administrator..
 "Wellness reimbursement program" does not include any underlying individual or group health insurance coverage or a self-insured group health plan.

Amend the bill further, SECTION 1, Section 38-105-30, by adding a subsection to read:

 (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:
  (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;
  (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;
  (3) explains the indemnification obligation of the wellness reimbursement program administrator pursuant to subsection (C); and
  (4) recommends that the employer consult with independent tax or legal counsel regarding the federal tax treatment of the wellness reimbursement program.

Renumber sections to conform.

Amend title to conform.