Gov. Mills signs Libby law to establish ABLE accounts in Maine

Legislation from Sen. Nate Libby, D-Lewiston, LD 1637, “An Act To Prevent Medicaid Payment from a Savings Account Established under the Federal ABLE Act of 2014,” was signed into law by Gov. Janet Mills on Monday.

“Living with a disability isn’t cheap, and there are plenty of things that insurance won’t pay for: wheelchairs, home modifications, and some medical services,” said Sen. Libby. “Before ABLE accounts, people living with disabilities were forced to live in poverty in order to receive the benefits they need to live.”

By law, people with disabilities must stay under a $2,000 cap of savings in order to qualify for the services and assistance they need to survive, including Social Security Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps), and Medicaid, even though living with a disability can be expensive as there are many disability-related costs including accessible housing and transportation, assistive technologies, and extensive, uncovered medical care.

ABLE accounts are tax-advantaged savings accounts for people with disabilities that allow those individuals and their families to save money, up to $15,000 a year, for many disability-related expenses, without affecting eligibility for public benefits.

LD 1637 establishes ABLE accounts in Maine, and reiterates in Maine law that funds in ABLE accounts will not count against account holders for purposes of eligibility for public benefits and that earnings on funds in ABLE accounts are exempt from taxation in Maine.

“I’m grateful for Sen. Libby’s work on this bill,” said Maine State Treasurer Henry Beck, whose office will oversee the ABLE Accounts. “This new law can have a positive impact on the lives of thousands of Mainers living with disabilities.”

LD 1637 will go into effect 90 days after the Legislature adjourns sine die, which is scheduled for June 19.