Navigating Long-Term Care in South Carolina

South Carolina participates in the federal/state long-term care partnership program, offering those with a qualified LTC Insurance policy dollar-for-dollar asset protection. Quality care options are available statewide, and several insurance solutions are available.

There are a variety of quality care options available throughout South Carolina. However, long-term health care costs are rising. These rapidly increasing costs for care services throughout the state are becoming burdensome on residents and their families for those who do not have Long-Term Care Insurance.

The variety of quality care options available throughout South Carolina for those who require long-term health care services include:

• adult day care centers
• assisted living facilities
• continuing care retirement communities
• home health care providers
• memory care facilities
• rehabilitation facilities
• traditional nursing homes

Top insurance companies have several insurance options to help residents safeguard income and assets, protect lifestyles, and preserve a legacy. Plus, policyholders will have access to quality care options giving loved ones the time to be family instead of caregivers.

Plus, all tax-qualified Long-Term Care Insurance policies in South Carolina have several consumer protections in addition to federal tax benefits.

Federal Partnership Program

The State of South Carolina participates in the federal/state long-term care program. The program, which was authorized under the federal Deficit Reduction Act (2005), provides consumers a way to protect assets from the high costs of long-term health care. The South Carolina Long-Term Care Partnership is a joint effort between the Federal Medicaid Program and Long-Term Care (LTC) insurers in cooperation with the South Carolina Department of Health and Human Services and the Department of Insurance

The Partnership was created to help South Carolina residents pay for the high cost of long-term care expenses without spending life savings. The partnership approved plans allow you to pay for needed care, whether at home, in an assisted living facility, or in a nursing home, all while preserving your dignity and independence. You no longer have to worry about impoverishing yourself or losing your savings to pay for long-term care expenses. This is referred to as “dollar-for-dollar” asset protection. In the event that you exhaust the benefits from your qualified South Carolina Long-Term Care Partnership insurance policy an equal amount of assets will be “disregarded” in the spend-down and recovery requirements in order to qualify for Medicaid long-term care benefits.

Policy Example

For example, if your South Carolina Partnership Long-Term Care insurance policy paid 350,000 in benefits your asset disregard would be $350,000. You would be able to maintain the $350,000 in addition to the normal allowance and still qualify for Medicaid’s Long-Term Care benefits. The Partnership Program also protects those assets after death from Medicaid estate recovery.

Reciprocity

Most states have reciprocity with other states' long-term-care partnership programs including South Carolina. This means if you move from or to South Carolina your partnership asset protection follows you as well. 

Medicaid

Long-Term Care Medicaid spend down is $2,000. A spouse’s minimum asset allowance is $66,480. Your spouse’s minimum monthly income allowance is $3,259.50. * The home equity limit is $603,000.

For more information about the Medicaid program visit www.medicaid.gov.

Rate Stability Rules

In addition, South Carolina consumers enjoy additional peace-of-mind as the state has adopted Long-Term Care Insurance Rate Stability Rules.  These rules, developed the National Association of Insurance Commissioners, makes it much harder for an insurance company to get an approved rate increase.

Products Approved in South Carolina

A variety of products are approved in South Carolina for Long-Term Care planning. This includes the traditional plans, including partnership certified policies, short-duration policies, and asset-based “hybrid” policies.

Tax Incentives

South Carolina does not offer any state tax incentives for qualified Long-Term Care insurance; however, federal tax incentives are still available.

Reverse Mortgages in South Carolina

Reverse mortgages are available in South Carolina. A reverse mortgage is a home equity loan where the borrower does not have to make payments.

If you have significant equity in your home and you and your spouse are at least 62 years old, you can get a reverse mortgage to turn your equity into funding long-term health care, pay for an LTC Insurance policy, pay bills and add to your retirement lifestyle.

This type of mortgage can increase monthly income, eliminate mortgage payments, and even fund Long-Term Care Insurance. However, South Carolina has many rules on these products, and you should seek the help of a qualified and licensed mortgage broker. 

The home must be the principal residence without any tax liens. 

Learn more about reverse mortgages by clicking here.

_{*The federal government sets a new minimum and maximum amounts each year, but states can set their own minimum requirements at any level between the federal limits. This information is based on the best available sources.}