Clawback protection for ABLE accounts strengthened

Lawmakers gave final approval April 9 to a measure intended to encourage participation in the state’s Achieving a Better Life Experience program.

The ABLE program, administered by the state treasurer, provides tax-advantaged savings accounts used to pay for the qualified disability expenses of a designated beneficiary.

The state is prohibited from reclaiming money that remains in a beneficiary’s account after their death to pay for medical assistance received by the beneficiary or their spouse or dependent under the state’s Medicaid program.

LB1240, sponsored by Glenvil Sen. Dave Murman, expands that prohibition, ensuring that funds distributed from an ABLE account upon a beneficiary’s death may not be reclaimed.

The bill passed 49-0.