South Carolina Medicare Savings Program Asset Limits: What Counts and What's Exempt
The asset test is where families talk themselves out of applying. They see a $9,950 limit, look at a savings account or an old IRA, and assume their parent won't qualify. But SCDHHS excludes a long list of assets from the count — starting with the house.
2026 Countable Resource Limits
All three MSP tiers share the same asset ceilings:
- Individual: $9,950
- Married couple: $14,910
If you see $9,660 or $14,470 published somewhere, those are outdated 2024/2025 figures. The 2026 limits are higher.
What SCDHHS Excludes
The primary residence is fully excluded regardless of market value. Unlike long-term care Medicaid, which enforces a $752,000 home equity cap in South Carolina, Medicare Savings Programs have no home equity limit at all. Your parent's house — whether it's worth $80,000 or $400,000 — doesn't count.
One vehicle used for transportation is fully excluded regardless of value. A second vehicle counts at its equity value.
Burial funds up to $1,500 per person are excluded, but the money must be kept in a separate account, not mixed with checking or savings. Irrevocable prepaid funeral contracts are fully excluded if they're non-refundable. Burial plots, crypts, and headstones are excluded with no dollar cap.
Life insurance depends on total face value. If all cash-value policies owned by your parent total $1,500 or less in face value, the cash surrender value is fully excluded. Over $1,500 in face value, the cash surrender value counts. Term life policies with no cash value are always excluded.
Retirement accounts depend on accessibility. An IRA or 401(k) that can be liquidated — even with early withdrawal penalties — counts as a resource at its net cash value. But if the account has been converted into an irrevocable periodic payment stream (annuitized), the principal is excluded and only the monthly payment counts as income.
Joint Accounts: The Presumption Trap
If your parent has a joint bank account with an adult child, SCDHHS presumes 100% of the money belongs to the applicant. You can rebut this presumption with financial tracing records showing the funds were deposited exclusively by the co-owner. If your parent's name is on a joint account mainly for convenience, gather bank statements showing who deposited what before applying.
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Married Couple Rules
When both spouses live together, their combined assets are measured against the $14,910 couple limit. Legally separated spouses or those living apart permanently are evaluated individually against the $9,950 single limit.
Getting the Count Right
The asset test is about what SCDHHS counts, not what your parent owns. A homeowner with a paid-off car, a $1,500 burial account, and $8,000 in savings has $8,000 in countable resources — well under the $9,950 limit. The South Carolina Medicare Savings Programs & Extra Help Guide walks through every exclusion with examples and a resource worksheet so you can calculate your parent's actual countable assets before filling out Form 3400.
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