Point of View: New legislation addresses Medicaid recovery on ABLE United accounts

Medicaid is the single largest health insurer for children. It is also the primary source of health care for low-income parents and individuals with disabilities. To put things in perspective, nearly four million Floridians receive Medicaid, and it covers two in five individuals with disabilities.

Federal benefits are invaluable to those needing additional assistance to deal with severe physical or intellectual conditions – providing a broad level of health insurance coverage including doctor and hospital visits, physical and occupational therapy, medication and other diagnostic, screening and rehabilitative services.

But, this type of assistance also puts limitations on the beneficiary, more specifically, the $2,000 asset limit that has previously forced this population to spend down their savings. The introduction of ABLE United provides an economical way for individuals with disabilities to save up to $15,000 per year tax-free without jeopardizing important federal benefits – an opportunity they hadn't previously been afforded.

Since its official launch in July 2016, ABLE United has?provided?thousands of Floridians with disabilities?a new way to save without affecting federal benefits like Supplemental Security Income?(SSI) and Medicaid. But there has been one obstacle left to overcome – until now.

Federal law allowed for a state to file a claim for Medicaid expenditures from an ABLE United account when a beneficiary passed away. This year, Florida joined California, Maryland, Pennsylvania, and Oregon in passing legislation to clarify that all outstanding funds in an ABLE United account, after Qualified Disability Expenses are paid, go to the beneficiary's estate.

When it comes to Medicaid recovery, ABLE United account owners will no longer be treated differently than any other individual who receives Medicaid. This will be a great assistance to adults with a disability, as well as families with young children that will most likely be subjected to the $2,000 asset limit once they reach adulthood – allowing them to begin to build a financial cushion for both daily living expenses as well as larger purchases, such as a house or car.

I applaud our state legislature for their efforts to help put individuals with disabilities, their families and caregivers' minds at ease knowing that they have control over what happens to their money. With nearly 13 percent of the state population reporting a disability, it's important that we continue to enhance the financial freedom of this community, ultimately, building a stronger Florida.

JOHN FINCH, WASHINGTON

John Finch serves as the Director of ABLE United at the Florida Prepaid College Board. For more information about ABLE United, visit?www.ableunited.com.??

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