Achieving a Better Life Experience Act (ABLE)

The Achieving a Better Life Experience Act (ABLE) was finally signed into law by the President on December 19, 2014. Tax-free savings accounts can now be built for a population that has historically been forced to live in poverty. Up until now, in order to be eligible for SSI and Medicaid, a person could not have more than $2,000 in cash and property ($3,000 for couples) or make more than $700 monthly (!) in order to be eligible for Medicaid or SSI. This means they can’t save money for things that Medicaid and SSI don’t cover like education, housing, a job coach or transportation. While the rest of society is encouraged to save for emergencies, unforeseen expenses and rainy days, people with disabilities – who have naturally higher expenses and higher medical needs – were forced to scrape pennies and do without due to archaic laws and discriminatory notions held by society in general.

What is the ABLE Act?

Once enacted by the States, this bi-partisan piece of legislation will give people with disabilities and their families freedoms and security never before experienced. It amends the IRS code of 1986 to allow savings accounts to be set up for individuals with disabilities much like the college tuition accounts known as “529 accounts” that have been around since 1996. The Treasury Department is currently writing all of the regulations. There will then be a period of time where public comments on the proposed rules will be allowed. Before the end of 2015, every State is expected to establish and operate an ABLE program.

  

  ü  Allows savings accounts to be set up for individuals with disabilities

  ü  Recipients do not have to count funds as income

  ü  Recipients do not have to pay taxes on funds if they are used for disability-related expenses

How does it work?

In a nutshell, once enacted by a State, an ABLE savings account can be opened up by an individual with a disability or by someone else on their behalf. Up to $14,000 may be deposited yearly untaxed, with that amount to be increased as inflation rises. If an account surpasses $100,000, the owner of the account will no longer be eligible for SSI but would not be in danger of losing Medicaid. When a person dies, Medicaid will be reimbursed first from the account before it is dispersed to the person’s estate.

  ü  Can be opened up by an individual with a disability or by someone else on their behalf

  ü  Up to $14,000 may be deposited yearly

  ü  Up to $100,000 can be accrued without affecting SSI

Who is eligible?

Individuals with a disability wanting to establish an ABLE account must have acquired their disability before turning 26. If an individual is over the age of 26 but their disability onset was prior to turning 26, they will be still be able to establish an ABLE account. Individuals who meet this requirement and receive SSI or SSDI are automatically eligible to establish an account. Individuals who do not receive these services may still be eligible if they meet SSI criteria regarding who is eligible. The Treasury Department will further explain standards of proof in the regulations they are currently completing.

  ü  Onset of disability must have occurred prior to turning 26 years of age

  ü  Must meet SSI eligibility criteria

What can the funds be used for?

While the details are still being finalized, it is anticipated that the funds will be allowed to cover any disability-related expenses, including:

  ü  Education

  ü  Housing

  ü  Transportation

  ü  Employment training and support

  ü  Assistive technology and personal support services

  ü  Health, prevention and wellness

  ü  Financial management and administrative services

  ü  Legal fees

  ü  Funeral and burial expenses

This is a great step forward in the right direction for this community. Let’s hope the regulations are completed sooner rather than later so that individuals and families can begin saving for a better life!

More 411 on the ABLE Act

In May, I posted "ABLE Act - Savings For People With Disabilities" which explains what the ABLE Act is and why it's so important to the disability community. I just came across this other article that also explains what it's about in very real terms. I wanted to share it because I can't stress enough how important it is that this piece of legislation become a reality! Here's the link to "How Medicaid Forces the Disabled to be Poor"

Medicaid For People Who NEED It

When we hear “Medicaid” many imagine a lazy, non-working individual, sitting at home watching Jerry Springer and Maury. But the fact is, 70% of Medicaid spending goes towards people with disabilities. According to a U.S. Census Bureau report released at the end of 2008, there were 54.4 million Americans living with at least one disability in a census taken in 2005. This means roughly 1 in 5 people are disabled. Of these 54.4 million, 35 million had a severe disability. These individuals needed assistance in performing activities of daily living (ADL) such as getting into or out of a chair or bed, dressing, bathing and eating. In many cases, assistance is also needed for other activities such as shopping, paying bills, using the telephone and light housework. (Americans with Disabilities, 2005)

Imagine not being able to get yourself to the bathroom or not being able to get yourself out of your own bed. What would you do if you were hungry but could not even make some simple toast for yourself? Are you going to be able to move your mom or dad into your home and care for them if they break a bone or develop dementia? These are some of the things that Medicaid can possibly pay for (or at least a portion of it). Being that it is so many peoples’ lifeline, why is it that when our government needs to tighten up the budget, they look to those who need the most to give the most? Cuts are being made to Medicaid on a regular basis and the health and well-being of our most vulnerable citizens is being threatened.

“Why don’t they just go get a real job” is commonly heard coming from the mouths of the able-bodied clueless. But I am here to tell you that Medicaid serves the type of people who can’t “just go get a real job” because they have disabilities that block them from doing so. In the 2005 census, less than half of the disabled population between the ages of 21 and 64 were employed. (Americans with Disabilities, 2005) With the state our economy is in as of late, I imagine that number to be much higher now.

Among individuals who are disabled between the ages of 25-64, 27.1 percent were in poverty, compared to 9.1 percent for people who had no disability. Of this same group, 57 percent of those who reported having a severe disability were receiving some form of public assistance through government programs such as food stamps or public housing where only 7.3 percent of non-disabled individuals required such assistance. (Americans with Disabilities, 2005) So before we go slashing public assistance, let’s think about the actual people it would be affecting. 

Too often the head honchos look at the bottom line and ignore the human beings that make up that line.

Affordable Care Act - Your Health Coverage Options Explained

Affordable Care Act  

Times, they are a-changing! Finding health insurance is a huge pain in the you-know-what for millions of Americans who don’t have steady employment. Even for those who do, it’s complicated and expensive! Before the end of the year, we will all have new options and purchasing power we have never before had through the Affordable Care Act (ACA), passed by Congress then signed into law by President Obama on March 23, 2010 & upheld by the United States Supreme Court on June 28, 2012.

Here are some FACTS about what you can expect:

ACA Title I

• Reduces what you have to spend on health care by
• Capping out-of-pocket expenses
•  Requiring preventive care to be fully covered
• If you like the coverage you have, you can keep it
• Provides hundreds of billions of dollars in tax relief – the largest middle class tax cut for health care in history 
• Members of Congress will also be required to purchase their insurance through the same Exchanges regular Americans will (See below for more info regarding Exchanges)
• Small business owners will receive a new tax credit to help offset the cost of covering their employees
• Pre-existing conditions will no longer be a basis of denial of coverage
• Better appeals process

ACA Title II

• Extends Medicaid while treating all States equally & preserves CHIP 
• Provides States with opportunities to expand home care services to people with long-term care needs 
• Reduces prescription drug costs and payments to subsidize care for uninsured Americans

There are a total of 10 Titles to the Affordable Care Act. If you want to read about them in depth, CLICK HERE

Affordable Insurance Exchanges

Historically, the individual and small group health insurance markets have suffered from adverse selection and high administrative costs, resulting in low value for consumers. Affordable Insurance Exchanges work similar to “Travelocity” where individuals and small businesses can look for the best deal in their state. Open enrollment is supposed to begin by Oct. 1; consumers will be able to use federal subsidies to purchase coverage by Jan 1, 2014.

How Exchanges Can Help YOU:

• Exchanges pool people together, reduce transaction costs, and increase transparency so they create more competitive markets for individuals & small employers
•  Eligible individuals will be assisted in receiving premium tax credits or coverage through other Federal or State health care programs
• One-stop shopping means buying health insurance will be easier

Exchanges In Your State:

On January 3, 2013, the total number of states with approved health insurance exchanges has been bumped up to 17. DC has also been approved. States which have not set up exchanges can decide to partner with the federal government, overseeing certain parts of the new exchange, or leave the entire task to the government. They have until Feb. 15^th to notify the feds which way they will go.

If you would like to see where your state falls, CLICK HERE

At this time (Jan. 11, 2013) the latest update was on Jan. 4^th. Check back on Feb. 15^th to see the final decision by your state!

Other Links:

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