With the lame-duck session set to wrap-up this week, the clock is ticking for Congress to rise above Washington gridlock and give millions of Americans with disabilities a chance for a better financial future.
Members in the House already did their job last week, voting to pass the Achieving a Better Life Experience or ABLE Act with wide, bipartisan support. For dedicated advocates, the passage was an encouraging achievement for their tireless effort over the past eight years to correct decades-long inequality and burden on people with disabilities and their families. It is now time for the Senate to also vote to pass this common-sense legislation.
The ABLE Act would allow individuals with disabilities to save towards their future without giving up access to much-needed government support. The average cost for families raising a child with a significant disability is staggering. Families face often-debilitating costs for transportation, assistive technology, continuing education, medical care and housing. Many people with disabilities fear that earning or saving too much money could cause them to lose access to supports that they need to live independently in the community. Currently, people with disabilities cannot save more than $2,000 in assets before jeopardizing their Medicaid and Supplemental Security Income benefits. People with disabilities often cannot save for emergencies and unanticipated challenges.
While many American families plan for the future by opening tax-advantaged 529 savings accounts to set aside funds for future college costs, families with children with disabilities lose federal benefits if they opt to make the same choice. The act would establish tax-free so-called ABLE accounts — a flexible savings tool similar to what other Americans have through college savings accounts, health savings accounts, and individual retirement accounts. People with disabilities would be able to save up to $14,000 annually at any financial institution. Families would also be able to use the account to cover medical expenses not covered by private insurance or Medicaid.
Read the full article here.
Contact Steven G. Cosby, MHSA with questions or to request more information and to schedule a healthcare plan evaluation, savings analysis or group plan solution for your company.