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Committee moves bill to bar Medicaid estate recovery from ABLE accounts
Summary
A Senate committee reported Senate Bill 2396 to prohibit Medicaid from seeking recovery of funds from ABLE accounts after an account holder's death, sponsors said.
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A Mississippi Senate committee reported Senate Bill 2396, which would prohibit Medicaid from recouping funds from Achieve a Better Life Experience (ABLE) accounts after an account holder's death, the sponsor said.
Senator Boyd explained the ABLE account is a tax-free savings vehicle for people with disabilities and noted that "when people have these accounts when they die, Medicaid can come back and call back any of the funds that were spent, that Medicaid spent on taking care of the person. And, basically, what this bill does is it prohibits that." He said similar protections exist in 22 other states and that Mississippi has not previously pursued recovery from ABLE accounts.
A motion of "title sufficient, do pass" carried by voice vote and the committee reported the bill out. The transcript does not include a roll-call tally, the specific statutory citation for the proposed prohibition, or a fiscal estimate for the change.
The sponsor noted the ABLE account program was created in law in 2019 in Mississippi and that the bill would place the Medicaid non-recovery rule into statute rather than relying on past practice.

