Senate committee backs bill to let Idaho join multistate ABLE consortium

The Senate Health and Welfare Committee voted to send House Bill 26 to the Senate floor with a do-pass recommendation after hearing testimony on establishing an Idaho ABLE (Achieving a Better Life Experience) savings program through a multistate consortium.

State Treasurer Julie Ellsworth told the committee the bill would allow Idaho to join an existing consortium that spreads administrative and investment costs across many states; that, she said, would lower fees for account holders and let Idaho capture a portion of account fees to support outreach and financial-literacy work in the state. "By joining a consortium," Ellsworth said, "it will take [fees] down to 19 to 33% basis points" from what she described as a current range of "45 to 59% basis point[s]" charged by some out-of-state programs.

ABLE accounts let people with disabilities save for qualified disability expenses without jeopardizing eligibility for means-tested benefits such as Medicaid and Supplemental Security Income. Testimony in favor came from disability advocates and current ABLE account holders who described practical barriers to using out-of-state programs.

"If I need money from my own account ... I have to call Tennessee who then has to call their bank in Boston to cut me a check," said Tara Rowe, an Idaho ABLE account holder who testified virtually. She told the committee that having an in‑state program would simplify access and help account holders manage the state's $2,000 asset limit for Medicaid eligibility.

Lisa Anderson, advocacy director for AARP Idaho, and Rochelle Tierney of the Idaho Council on Developmental Disabilities also urged support, saying an Idaho program would lower fees for account holders, allow local outreach and provide greater oversight and protection for Idahoans with disabilities.

Ellsworth said the bill creates a voluntary, unpaid advisory council; the draft language cites existing law that advisory members "shall serve without honorarium, compensation or expense reimbursement of any kind." She told senators the measure has no direct fiscal impact on the general fund as written.

Committee members asked about a state recovery or "clawback" for funds remaining in ABLE accounts. Ellsworth confirmed the bill includes a clawback provision: when an account is closed, remaining funds can be claimed by the state that sponsored the account to satisfy Medicaid obligations, and under the bill that would be Idaho if the account is opened in Idaho.

Others highlighted an eligibility change that takes effect in 2026: the age of onset limit for ABLE accounts will rise (Ellsworth said it will increase from the prior cutoff in the mid-20s to 46), which will broaden eligibility for some veterans and others with later-onset disabilities.

After testimony and questions, Senator Shippey moved and Senator Wintrow seconded that the committee send H.B. 26 to the Senate floor with a do-pass recommendation; the committee approved the motion by voice vote.

Votes at a glance: House Bill 26 — motion to send to the Senate floor with a do-pass recommendation moved by Senator Shippey and seconded by Senator Wintrow; outcome: approved by voice vote (no recorded roll-call tally in the transcript).

The committee's action advances the measure to the full Senate for further consideration; committee members and witnesses said additional details about fees, outreach and the advisory council would be clarified as the bill moves forward.