Libby bill to establish ABLE accounts in Maine receives unanimous Senate approval

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,” to establish ABLE accounts in Maine, was unanimously approved in the Maine Senate on Monday.

“Whether it’s purchasing a wheelchair, making home modifications, or paying for medical services not covered by insurance, living with a disability is expensive, and ABLE accounts help pay for those costs,” said Sen. Libby. “LD 1637 will allow Mainers with disabilities to take full advantage of the ABLE Act and no longer resign themselves to a life of poverty in order to receive the benefits they need to live.”

Under current 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 SSI, SNAP 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.

“ABLE accounts will help Mainers with disabilities save and improve quality of life,” said Maine State Treasurer Henry Beck at a recent public hearing on LD 1637. “Senator Libby’s legislation will provide certainty for Maine people and financial institutions.”

The bill now goes faces additional votes in the Maine Senate and House.