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Social Security and Supplemental Security Income Cost-of-living Adjustment Increases and Rebudgeting of Cases

Social Security and Supplemental Security Income Cost-of-living Adjustment Increases and Rebudgeting of Cases

MB#
26-001

Effective Jan. 1, 2026, Social Security (Title II-SSA) and Supplemental Security Income (SSI) benefits payments will include a 2.8% cost-of-living adjustment (COLA). The South Carolina Department of Health and Human Services (SCDHHS) processed COLA re-budgets in December 2025 for impacted members. 

Nursing facilities and community residential care facilities (CRCFs) will receive a form for impacted members. Nursing facilities must indicate the current level of care for the member and submit the MSC002 form to BlueCross BlueShield of South Carolina to update the member’s cost of care. CRCFs should sign the MSC004 form and submit it to BlueCross BlueShield of South Carolina with their monthly billing. Further information on the rebudgeting process and samples of the forms that facilities will receive are listed below.

Nursing Facilities

  • Nursing facilities will receive Form MSC002 or MSC002PNA.
  • For facilities that bill in Phoenix, cost of care will be updated in Phoenix.
  • Nursing facility providers with questions about this bulletin should contact the Nursing Home Provider Liaison Center at (877) 797-5409 or NursingHomePLC@bcbssc.com. 

CRCFs 

  • CRCFs will receive Form MSC004.
    • Section II: A and B of Form MSC004 should be left blank for COLA updates.
  • The maximum payment made to a facility will increase to $1,719. The net income limit will increase to $1,804.
  • The personal needs allowance (PNA) for optional state supplementation (OSS) recipients who receive recurring income only through SSI will increase by $2 to $85 per month.
  • The PNA for OSS recipients who have income other than SSI will increase by $2 to $105 per month.
  • If there is an income change or the form contains incorrect information, please contact SCDHHS at OSSProElig@scdhhs.gov to update.
  • CRCF providers with questions about this bulletin should contact OSS Provider Eligibility at OSSProElig@scdhhs.gov. 

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