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An Act To Prevent Medicaid Payment from a Savings Account Established under the Federal ABLE Act of 2014
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 5 MRSA §156, as enacted by PL 2017, c. 394, §1, is amended to read:
§ 156.Authorization to establish program; payments for MaineCare benefits prohibited
The Treasurer of State is authorized to establish in this State the ABLE ME Savings Program, referred to in this section as "the program," to allow an individual with a disability to establish a federal tax-advantaged savings account and use the funds in that account to pay for the individual's care. The program must comply with the requirements of the federal Achieving a Better Life Experience Act of 2014, Public Law 113-295.
The State, or any agency or instrumentality of the State, may not seek payment under the federal Internal Revenue Code, 26 United States Code, Section 529A from an account, or its proceeds, that is established under a qualified ABLE program for MaineCare benefits provided to a designated beneficiary, unless otherwise required by the United States Social Security Act, 42 United States Code, Section 1396p(b).
Funds held in an account established under a qualified ABLE program that complies with the requirements of the federal Achieving a Better Life Experience Act of 2014, Public Law 113-295 or distributed for the purposes of paying qualified expenses must be disregarded when determining the designated beneficiary's eligibility for any means-tested public assistance program.
The Treasurer of State may adopt routine technical rules pursuant to chapter 375, subchapter 2-A to implement the provisions of this section, including all terms and conditions of the program.
Sec. 2.  36 MRSA §5122, sub-§2, ¶QQ  is enacted to read:
 
QQ.  For tax years beginning on or after January 1, 2020, any earnings on funds in an account established under a qualified ABLE program that complies with the requirements of the federal Achieving a Better Life Experience Act of 2014, Public Law 113-295.
 
SUMMARY
This bill:
1. Prohibits the State, or any agency or instrumentality of the State, from seeking payment from an ABLE account or its proceeds for MaineCare benefits provided to a beneficiary, unless otherwise required by federal law;
2. Provides that funds held in an ABLE account must be disregarded when determining the designated beneficiary's eligibility for any means-tested public assistance program; and
3. Provides that earnings on funds held in an ABLE account are exempt from taxation by the State.