Libby bill would 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,” to establish ABLE accounts in Maine, was the subject of a public hearing before the Legislature’s Health and Human Services Committee on Thursday.

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

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. “Senator Libby’s legislation will provide certainty for Maine people and financial institutions.”

The Health and Human Services Committee will take an initial vote on LD 1637 in the coming weeks.