CMI briefingSCDHHSResidential Care & HCBS Waivers

SC Medicaid managed care and HCBS waivers: Current state and planning outlook

What's actually confirmed about SC's managed care carve-in as of 2026, what remains fee-for-service, and how to think about the widely-discussed possibility of a future full transition.

SCDHHS Managed Care Carve-In Guidance (effective Jan. 1, 2026) · Updated Nov 5, 2026

This page is CMI's own briefing on the topic, written by CMI. It is not the text of the regulation. Read the regulation itself in the Regulatory hub or at the official source.

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Strategic planning tool: Managed care and HCBS waiver transition

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What's confirmed, as of this writing:

ItemStatus
Medical/State Plan services for Healthy Connections Medicaid members in the Community Choices, HIV/AIDS and Mechanical Ventilator Dependent waiversMoved into managed care organizations (MCOs) effective January 1, 2026
Waiver services (personal care, respite, habilitation and similar)Explicitly remain fee-for-service; SCDHHS's own guidance states this directly and gives no published end date
Nursing facility servicesStay fee-for-service; nursing facility residents are enrolled for medical services only
BHDD OIDD-administered waivers (ID/RD, Community Supports, HASCI)Not addressed in SCDHHS's carve-in guidance

What is not announced: We found no published SCDHHS timeline for moving HCBS waiver services themselves into managed care, so do not plan around a specific date. Other states have phased such transitions over several years, and the 180-day continuity-of-care period used in the 2026 carve-in shows the kind of mechanics SCDHHS has used.

Why readiness still matters: The 180-day continuity-of-care period SCDHHS required during the 2026 medical-services carve-in is a preview of the kind of transition mechanics likely to apply to any future waiver-services carve-in as well.

What to monitor directly, rather than relying on secondhand timelines: SCDHHS's Managed Care Carve-In page and FAQ (scdhhs.gov/carvein), waiver renewal public notices (each HCBS waiver has its own multi-year renewal/expiration cycle — CMS approved the Community Choices and HIV/AIDS renewals retroactive to July 1, 2026, and renewal cycles are a natural point where scope changes get introduced), and SCDHHS Medical Care Advisory Committee (MCAC) meeting materials, which have historically previewed policy direction before formal announcements.

Practical takeaway: Because no date is announced, focus on readiness you need anyway: clean documentation, accurate claim routing between MCO and fee-for-service, and current contacts at each plan. The companion Strategic Planning Tool in the Resource Library can help you assess readiness.

View the official source ↗

General information, not legal advice. Requirements change; confirm against the official source before you act, or ask us how this applies to your organization.