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Health Policy in SC—Breaking Down Recent Wins and What’s Still on the Horizon

October 2, 2025

Durable Medical Equipment now exempt from sales tax (for Medicaid/Medicare purchases)
On May 12, 2025, Governor McMaster signed H. 3800 into law, restoring South Carolina’s sales tax exemption for durable medical equipment (DME) when purchased with Medicaid or Medicare funds. As a result, eligible supplies like CPAP machines, walkers, adult diapers, and other DME may now be sold tax-free (when the purchase is directly under Medicaid/Medicare and the seller holds a South Carolina retail sales license). This change should reduce barriers for our clients and make medical equipment more affordable.

A $350 Million Brain Health Hospital – South Carolina’s Vision for Neurological Care
The University of South Carolina is planning a $350 million neurological hospital — the state’s first standalone facility for brain, nerve, and rehabilitation care. This center would house advanced neurology, neurosurgery, rehabilitation, and clinical research, bringing more in-state capacity for treatment of ALS, Alzheimer’s, stroke, and traumatic brain injury.
The project is under active development: USC’s board has approved initial funding, and the university is seeking legislative and partner support. A complementary $30 million brain health clinic is also planned for downtown Columbia to serve as a hub in a statewide network.

Personal Needs Allowance Set to Increase for Nursing Home and Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/IID) Residents in South Carolina
The South Carolina Department of Health and Human Services (SCDHHS) has announced a proposed increase to the Personal Needs Allowance (PNA) for individuals residing in skilled nursing facilities and Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/IID). Effective October 1, 2025, the PNA will rise from $30 to $60 per month. This adjustment aims to better support residents in covering personal expenses not included in Medicaid coverage, such as clothing, toiletries, and other personal items.

Currently, South Carolina’s personal needs allowance (PNA) for Medicaid-funded nursing home residents is $30 per month — the same amount set since 1988, making SC one of the lowest in the nation. While the increase is pending final approval, the proposed change makes a meaningful step toward giving residents more flexibility in meeting their personal needs — and we will track the bill’s further progress in session.

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