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South carolina department of health and human services medicaid policy and procedures manual


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101.13.08 Receipt of Subpoena to Request Release of Information to Courts (Eff. 10/01/05)

If confidential information is requested through a subpoena, the Medicaid eligibility worker should immediately contact the Office of General Counsel at the State Department of Health and Human Services. A copy of the subpoena must be faxed to the Office of General Counsel, which will instruct the eligibility worker regarding the action to be taken.



101.13.09 Confidentiality Release of Aggregate Data and Information for Audits (Rev. 06/01/08)

General or statistical information such as total expenditures, the number of beneficiaries served and other information that cannot be identified with a specific person may be released. Protected information may be released to state and federal auditors performing bona fide audits.



101.13.10 Right to Appeal and Fair Hearing (Rev. 11/01/12)

At the time of any action affecting an applicant or beneficiary’s claim for assistance, the applicant/beneficiary must be:




  • Informed of his right to a fair hearing;

  • Informed of the method by which he/she may request a hearing; and

  • Informed that he/she may represent himself/herself or be represented by any other authorized person such as a lawyer, relative, friend, or other spokesman.

The agency must grant the opportunity for a fair hearing to any:




  • Applicant/beneficiary who requests it because his claim for medical assistance is denied or is not acted upon with reasonable promptness;

  • Applicant/beneficiary who requests it because he/she believes that the agency has taken an action erroneously; and

  • Applicant/beneficiary who requests it because he/she believes a nursing facility has erroneously determined that he/she needed to be transferred or discharged.

The agency will not grant a hearing when the sole issue is a federal or state law requiring an automatic change which adversely affects some or all beneficiaries.



Table of Contents


Procedure to Request a Fair Hearing:


  • The request for a fair hearing must be made in writing and signed by the applicant/ beneficiary or his authorized representative.

  • The request must be made within 30 calendar days from the date on the Notice of Adverse Action. If the request is received after 30 days, the eligibility worker should still follow the steps listed below for an appeal, and include a request to dismiss the appeal for failing to meet the time frame. The hearing officer will decide if the appeal should continue (such as for good cause), or if it should be denied.

  • If the applicant/beneficiary calls to ask for an appeal, the eligibility worker should complete Part I of the DHHS Form 3260 ME, Request for Fair Hearing for Medicaid Applicant/Beneficiary, and then instruct the applicant/beneficiary to complete Part II, sign, date, and return it to the eligibility worker for submission to the DHHS Division of Appeals.

  • The written request for a hearing consists of the DHHS Form 3260 ME or a letter from the applicant/beneficiary stating his wish for a hearing and the reason(s) for requesting a hearing. Should the applicant/beneficiary request an appeal by letter, the Medicaid eligibility worker should complete Part I of the DHHS Form 3260 ME for submission to the DHHS Division of Appeals along with the letter. Note: If there is a signed appeal statement, no applicant/beneficiary signature is needed on the DHHS Form 3260 ME.

  • If by chance the applicant/beneficiary appeals directly to the Division of Appeals, the division will notify the eligibility worker to submit the DHHS Form 3260 ME and prepare an appeals summary. The eligibility worker will submit the DHHS Form 3260 ME for all appeals, even if the client decides to submit the DHHS Form 3260 ME to the DHHS Division of Appeals.

  • If the request for a hearing is based on a disability decision, the eligibility worker will submit the disability decision (copy of Form MAO99- Medicaid Disability Determination), along with the hearing request.


Steps for the Medicaid Eligibility Worker:
Step One:  Notify immediate supervisor of the appeal request.

  • The supervisor or his designee must:

  • If it is determined that the DHHS decision was made in error, the worker must complete the following actions:

    • Complete at “letter of correction” which must contain information advising the beneficiary that:

      • An error was made

      • The error has been corrected

      • Their eligibility is continued if the error resulted in a closure.

    • Complete any needed manual notices and mark them Corrected Copy (Example: Corrected DHHS Form 3229, A Cost of Care Notice)

    • Submit the following to the Division of Appeals, sending a copy to the applicant/beneficiary/authorized representative (if applicable), and retaining a copy for the case file:

      • DHHS Form 3260

      • “Letter of correction”

      • Any manual notices reflecting a correction


Step Two: If no error is found, the supervisor must assist the worker in preparing a detailed summary of the case situation. The summary should include, at minimum, the following information:

  • Petitioner’s name, address, phone number;

  • Category of Assistance;

  • Medicaid Beneficiary ID (s) and Household Number;

  • Date application or review was stamped as received by DHHS;

  • Date (s) of action (denial, closure, re-budget, etc…);

  • A statement of the eligibility criteria that were met;

  • Reason(s) for the Notice of Adverse Action (include all criteria that were not met); and

  • Whether retroactive benefits were requested and the period;

  • Statement of other categories considered (Exparte Determination);

  • Name, address and phone number of person completing the appeal summary;

  • A copy of the DHHS Form 3315, Appeals Package Checklist.

Step Three: The worker must prepare a complete appeals package using the DHHS Form 3315. The package must contain the following:

  • Completed DHHS Form 3260

  • Appeals Summary

  • All supporting documents, to include:

    • Application/review form if the beneficiary’s statement on the form was used as a basis for the action

    • Income Verification, such as:

      • Check stubs; wage statements; DHHS Form 1245 ME, Wage Verification

      • Income Tax Returns

      • Child support printouts or DHHS Form 1216 ME, Voluntary Child Support

      • Social Security, VA, Unemployment Benefits

      • IEVS printouts, award letters, DHHS Form 1212 ME, Veterans Information

    • Resource Verifications, such as:

      • Bank statements, DHHS Form 1253 ME, Financial Investigation

      • Property verification, DHHS Form 1255 ME, Real and Personal Property

      • Budget sheets

    • Other documentation/verification, such as:

      • Citizenship/alien verification

      • Copies of MPPM sections supporting the case action


Step Four: The appeals package must be submitted to the Division of Appeals. A copy of the entire appeals package must be sent to the Petitioner (person who asked for the appeal) for the purpose of clarifying the issues in advance, and allowing the Petitioner time to prepare for the hearing and to respond to the eligibility assertions. A copy should also be sent to the authorized representative (if applicable), and a copy is retained in the case record.






Continuation of Benefits During the Appeal Process:
Medicaid benefits may continue until a ruling is made by the hearing officer for a beneficiary who submits a timely written request for a fair hearing. Only open cases may receive continued benefits.


  • A beneficiary may receive a continuation of Medicaid benefits only if the request for a fair hearing is made in writing prior to the effective date of closure in MEDS (the first day of the month in which Medicaid eligibility ended). The eligibility worker must take the appropriate steps in MEDS to reopen the case.

  • The eligibility worker must explain to the beneficiary that if the hearing officer rules in support of the action or decision made by SCDHHS, any payments made to providers for services received by the beneficiary during this period are subject to repayment.

The beneficiary can decline the continuation of benefits on the DHHS Form 3260 or by other written request such as a letter or fax.




  • If the beneficiary declines in writing prior to the effective date in MEDS, do not reopen the case.

  • If the beneficiary declines in writing after the case has been reopened, the eligibility worker must immediately close the case using Reason Code 004.

Example: George Jones receives a closure notice dated January 15 indicating his Medicaid eligibility will end effective February 1. He requests a fair hearing on January 29. Unless he declines, he will receive a continuation of Medicaid benefits.

  • If the request for a fair hearing is received on or after the date eligibility ends in MEDS, benefits cannot be continued.

Example: Hank Williams receives a closure notice dated January 15 indicating his Medicaid eligibility will end effective February 1. He requests a fair hearing on February 10. Because his request was made after his eligibility ended in MEDS, he cannot receive a continuation of Medicaid benefits.

  • If the hearing officer rules in support of the agency’s action or decision, the eligibility worker must prepare an overpayment summary in accordance with policy as outlined in MPPM 101.17.03.








Pre-hearing Conference:
If an applicant/beneficiary or his representative requests a conference prior to the hearing, the eligibility worker must schedule a conference to:


  • Discuss the situation of the applicant/beneficiary,

  • Discuss the reasons for the proposed action, and

  • Provide an opportunity for the applicant/beneficiary to present information to show that the proposed action is incorrect.

Because of this conference, if it is indicated that the eligibility worker has committed an error, then the eligibility worker must take corrective action and notify the applicant/beneficiary and the DHHS Division of Appeals of the decision. This conference does not nullify the right to a hearing of the applicant/beneficiary.





Issuing an “Order of Remand”
The Hearing Officer in the Division of Appeals and Hearings may issue an Order of Remand. The Order of Remand is not a final Appeals decision but is an Order directing the Eligibility Worker to perform certain actions so that the Appeals Division may determine if a hearing is necessary. If an Order of Remand is received from the Hearing Officer, the Eligibility Worker should follow the directives found under the "ORDER" section of the Order of Remand. Many times the Hearing Officer will direct the Eligibility Worker to issue a new “Notice of Approval/Denial” after following the specific directives; therefore, a new eligibility decision must be issued with the normal appeal rights included with the new decision. The applicant/beneficiary has the right to appeal the new decision.
Dismissals/Denials
The agency may deny or dismiss a request for a hearing, if the applicant/beneficiary:


  • Submits a written withdrawal request to the DHHS Division of Appeals and Hearings; or

  • Fails to appear at the scheduled hearing without good cause.

  • Fails, when so directed by the Hearing Officer, to provide the Hearing Officer with an error of fact or law that could possibly reverse the agency’s decision.


Notification of Hearing
Staff in the Division of Appeals and Hearings will notify the Petitioner at least 30 days before the appointed hearing date of the following:


  • The time and place of the hearing;

  • The subject of the hearing;

  • The hearing procedures;

  • The statement indicating that the appeal summary will be forwarded to them by the eligibility worker and to contact the eligibility worker if the appeal summary is not received;

  • The Petitioner’s right to present written evidence and testimony and to call witnesses;

  • The opportunity to review the case file in advance of the hearing; and

  • The name of the proper person to notify in the event the Petitioner cannot keep the scheduled appointment.

A copy of this notice is mailed to the Regional Administrator and all other responsible parties.



Table of Contents

Present at the Hearing
A hearing officer of DHHS conducts the hearing. Persons who have taken part in the decision may not conduct the hearing or take part in the final decision making process. The following persons will be present at the hearing:


  • Petitioner – The applicant/beneficiary making the request for a hearing or his representative.

  • Respondent – DHHS, as the State Medicaid Agency, is the Respondent.

  • Respondent’s Agent – The Respondent’s Agent may include but is not limited to the DHHS Medicaid eligibility worker, the eligibility worker’s direct supervisor or his designee, the Vocational Rehabilitation Department, the Department of Disabilities and Special Needs, and the Professional Review Organization.


Hearing Format
In general, the format of the hearing is as follows:


  • Statement of Issue

  • Period of Testimony

  • Summation

  • Conclusion of Hearing


Group Hearings
Under certain circumstances, a group hearing on two or more appeals may be held, if:


        • The issue is confined solely to state policy or a change in state policy, and

        • Each Petitioner is permitted to present his own case or have his case presented by a designated representative.

Once a decision is rendered, each Petitioner will receive an individually written decision concerning his appeal. All other policies and procedures governing hearings apply.


The Decision
The Division of Appeals and Hearings will make the final administrative action on the appeal within 90 calendar days of the date the initial request was received. The hearing officer will review the record and make a decision. The decision will be issued in writing and will set forth the issue(s), the relevant facts presented at the hearing, the pertinent provisions in law, regulations, and agency policy, and the reasoning that led to the decision.
Once the decision is mailed to all responsible parties, the Medicaid eligibility worker shall implement the directive(s) of the decision.

Appellate Review
Any party has the right to petition for further review of an Order of Final Administrative Decision, pursuant to the Administrative Procedures Act [SC Code Ann. Section 1-23-310, et seq. (1976, as amended)]. In accordance with the Rules of Procedure for the SC Administrative Law Judge Division, within 30 days of receipt of the Order/Decision from which the appeal is taken, the petition should be directed to:
Administrative Law Court

1205 Pendleton Street

Edgar Brown Building – 2nd Floor

Columbia, South Carolina 29201


If an appeal to the Administrative Law Court is filed, a copy of the petition must be provided to the DHHS Office of General Counsel.

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