Medicaid estate recovery; prohibit application of to obtain funds from ABLE accounts.
The enactment of HB1302 would significantly alter how Medicaid operates in relation to ABLE accounts in Mississippi. It would ensure that funds in ABLE accounts, which are intended for the financial support of individuals with disabilities, are safeguarded from recovery claims by the state for past Medicaid benefits. This amendment not only protects these funds but also aligns Mississippi's policies with federal regulations aimed at protecting the financial interests of individuals with disabilities, thus enhancing their financial independence and security.
House Bill 1302 aims to amend several sections of the Mississippi Code to prohibit the state and its agencies from seeking payment for Medicaid benefits provided to a designated beneficiary from their Mississippi ABLE account. The bill amends Section 43-28-23, which outlines the treatment of funds in ABLE accounts upon the death of the beneficiary, ensuring these funds cannot be claimed for Medicaid repayment, thereby protecting them as a resource for disabled individuals. This underscores the state's commitment to uphold the rights of individuals with disabilities against potential financial liabilities after death.
While the bill is poised to strengthen the protections surrounding ABLE accounts, it may face contention from those concerned about the implications of reduced state revenue recovery opportunities. Supporters argue that such measures are essential for encouraging savings among disabled individuals, while critics may contend it restricts the state's ability to recover Medicaid expenditures. The balance between supporting individuals with disabilities and maintaining financial accountability for the state could be a point of debate among legislators and stakeholders.