ABLE Accounts Update: No Medicaid Recovery!
Written by: Christian N. Horde, J.D., LL.M.
A year ago, Florida made effective from July 2018 through June 2019 that the state Medicaid program may not file a claim for Medicaid recovery of funds in an ABLE account. See Florida Statute Â§ 1009.986(4)(b).
Despite the great news, we were still left wondering whether the change would be made permanent by the following year. Many individuals still feared the return of Medicaid recovery causing them to avoid opening an ABLE account.
We are happy to say that no Medicaid recovery is now a permanent change!
House Bill 6047 was signed and approved by the Governor on June 7, 2019. The bill revoked the scheduled reversion of provisions related to distribution of funds in ABLE account upon death of designated beneficiary. See https://www.flsenate.gov/Session/Bill/2019/06047.
Floridians covered by Medicaid no longer need to fear that a Medicaid claim will be filed on their ABLE accounts. All outstanding funds in an ABLE United account, after Qualified Disability Expenses are paid, will go to either (1) the designated beneficiary’s estate or (2) an ABLE account of another eligible individual specified by the designated beneficiary.
ABLE accounts haveâ€¯providedâ€¯many individuals with disabilitiesâ€¯a new way to save without affecting government benefits like Supplemental Security Income (SSI) and Medicaid.
The Elder Law Center of Kirson & Fuller can help you maximize the use of ABLE accounts while you plan for the future. For example, ABLE accounts allow individuals the ability to save beyond the $2,000.00 income limit set by SSI and Medicaid without penalty. An ABLE account may be used to pay for Qualified Disability Expenses without fear of a reduction in SSI or Medicaid benefits; housing payments will not incur In-kind Support and Maintenance (ISM) deductions.
To learn more about Florida ABLE accounts visit: http://www.ableunited.com/.