In a recent government meeting, Michigan lawmakers discussed House Bill 5781, aimed at expanding the state's MiABLE program, which provides tax-advantaged savings accounts for individuals with disabilities. The bill, sponsored by Representative McDonald, seeks to align Michigan's ABLE accounts with recent federal updates that allow for tax-free rollovers from education savings accounts and raise the maximum age for disability onset eligibility from 26 to 46.

Since its inception in 2015, the MiABLE program has enabled Michiganders with disabilities to save for essential expenses without jeopardizing their eligibility for Supplemental Security Income (SSI). However, due to a unique provision in Michigan's constitution, federal updates do not automatically apply, necessitating legislative action to implement these changes.

The proposed legislation is expected to significantly increase the number of eligible participants, potentially doubling the current figure of 56,000 individuals in Michigan. Amanda West from the Department of Treasury emphasized the importance of raising awareness about the program, noting that only about 5,500 accounts have been opened to date.

The MiABLE accounts allow individuals to save up to $18,000 annually, with additional contributions possible for those with income, while maintaining their Medicaid benefits. Funds can be used for a variety of qualified disability expenses, including education, housing, and transportation.

West highlighted the need for a comprehensive marketing strategy to inform the community about the program, expressing hope for a $3 million appropriations request to fund a statewide campaign. Lawmakers discussed ways to assist in outreach efforts, including providing informational materials for constituents.

Overall, the meeting underscored the potential impact of House Bill 5781 in enhancing financial independence for individuals with disabilities in Michigan, while also addressing the critical need for increased awareness and accessibility of the MiABLE program.