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House votes to waive Medicaid payback on ABLE accounts to encourage savings for people with disabilities
Summary
Lawmakers passed a bill preventing Medicaid from seeking post‑death payback from ABLE accounts, measures supported by the Division of Medicaid. Supporters said most ABLE accounts hold only modest balances; opponents asked for sunset or review language. Final vote: 103–8.
The House passed legislation that waives the state Medicaid program’s ability to seek post‑death payback from ABLE (Achieving a Better Life Experience) accounts owned by eligible individuals with disabilities.
Sponsors said the Division of Medicaid supports the change; Medicaid staff told members that the agency has no record of clawbacks from ABLE accounts in Mississippi and does not plan to exercise clawback authority, but that the statutory possibility discourages families from using ABLE accounts to save for disability‑related expenses. "They support the bill. They have no interest in clawing back," a sponsor said on the floor.
Floor questions focused on program details and fairness. Members asked who qualifies for an ABLE account and whether the accounts are ripe for misuse as a tax shelter. Sponsors responded that ABLE accounts are governed by federal law, typically have small balances (sponsors said average balances were around $4,000–$5,000) and limit annual contributions (up to $19,000 per year was discussed on the floor). A committee member also cited a statutory maximum ABLE balance (stated on the floor as $235,000) and said ABLE accounts exist to allow people with qualifying disabilities to save while preserving means‑tested benefits.
A number of members asked for follow‑up and oversight language. One member asked that the bill include a repealer so the policy could return for review; the sponsor agreed to pursue other channels if members wished additional oversight.
The House approved the bill on a recorded vote of 103 yeas and 8 nays.
What it changes: if enacted, the state will waive Medicaid estate recovery from ABLE account balances when a beneficiary dies, aligning state practice with a growing number of other states that have adopted similar waivers and reducing a perceived disincentive families face when opening ABLE accounts.
