South Carolina Medicaid Estate Recovery and Lien Process

When an individual receiving Medicaid benefits in the state of South Carolina dies, the state is required to attempt to recover from his or her estate to cost of benefits paid for care.  In August of 1993, Congress passed a law that requires states to recover amounts that Medicaid has paid for certain recipients.  In South Carolina the Estate Recovery Program went into effect on July 1, 1994 and the state will recover amounts paid by Medicaid for services received July 1, 1994 or later.

Medicaid Estate recovery and lien process applies to the following beneficiaries:

• A person who was 55 years of age or older when he or she received medical assistance consisting of nursing facility services, home and community based service care to include prescriptions and hospital stays associated with either of these services paid by Medicaid; or
• A person of any age who was an inpatient in a nursing facility, intermediate care facility for the mentally retarded, or long term care facility at the time of death; and, who was required to pay most of his/her monthly income to the facility toward the cost of care.

The law restricts the State of South Carolina to recover the cost of the benefits paid until after the death of the decedent’s surviving spouse, if one exists, and only at a time when the decedent has no surviving child under age twenty-one or no child who is blind or permanently and totally disabled as defined in Title XVI of the Social Security Act. However, the state of South Carolina is required to recover funds from the Medicaid recipient’s estate during probate.

More Information on the South Carolina Medicaid Estate Recovery Process

When a beneficiary dies, the state files a claim with the probate court against the beneficiary’s estate to recover amounts paid by Medicaid for the deceased beneficiary’s medical care. An estate is all real and personal property and other assets of the deceased person (recipient) as defined in South Carolina State Law.

This claim will be similar to claims for funeral expenses, attorney’s fees to administer the estate, and tax. This claim will need to be satisfied in order to close the estate; however, it may not require the selling of the decedent’s home and land if there are other assets available to pay the Medicaid claim. In the event other assets are insufficient to repay the Medicaid claim and/or other expenses of the estate, the Personal Representative (Administrator, Executor, and Executrix) may choose other options to repay the Medicaid debt. The state is not interested in taking title to anyone’s home.

(Source: South Carolina Department of Health and Human Services)

Plan Now, Consult a South Carolina Medicaid Planning Lawyer in Spartanburg & Greenville SC

Our Medicaid planning attorney can assist you in developing a custom-tailored strategy to protect your assets from the South Carolina Medicaid Estate Recovery and Lien process.  Don’t wait to plan, contact an Medicaid Asset Protection attorney at the McQueen Law Firm to discuss your Medicaid planning options and requirements today at 864.585.5021 or online to schedule an appointment.

McQueen Law Firm | “A Trusted Partner” | Serving the State of South Carolina Since 1985 | Spartanburg County | Greenville County | Anderson County | Cherokee County | Union County

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