Congress Is Poised To Pass Significant Legislation To Help The Disabled

[ksen]

http://thinkprogress.org/health/2014/12/05/3600217/congress-poised-pass-able/

In a rare show of bipartisanship, the House recently passed what’s considered “the broadest legislation to help the disabled in nearly a quarter century,” giving families and advocates a glimmer of hope in the ongoing fight to meet the needs of a vulnerable population.

The bill, titled the Achieving A Better Life Experience (ABLE) Act, would allow states to establish a program modeled after tax-free college saving accounts. If enacted, families would be able to deposit up to $14,000 annually in accounts at financial institutions with which they would pay for long-term needs, including education, transportation, and health care.

People older than the age of 25 qualify if they are diagnosed with a disability that creates “marked and severe functional limitations.” In all, ABLE account holders would be able to accrue $100,000 in savings without losing eligibility for Social Security and Medicaid, a significant jump in the current asset limit of $2,000.

How many people taking care of disabled relatives have enough liquidity to save $14,000/yr?

And why does the provided answer to a lot of our problems seem to be another bank account?

This is another area where a single payer system would work better.

 

[Keith&Co.]

How many people taking care of disabled relatives have enough liquidity to save $14,000/yr?

I think the benefit is the 'tax-free' part. It looks that way to me, if it compares to the tax-free college fund. If you're going to pay $hitload dollar$ to take care of a disabled family member anyway, you can use this to earmark those funds specifically for that and not pay taxes on it.

 

[Jimmy Higgins]

The good news is, you can count on Government to let you have to shell out tens of thousands annually (but now tax free ) because you lost in the Lottery that the right-wing calls self-responsibility. If you can't afford to take care of someone with a responsibility...

 

[coloradoatheist]

If I understand it correctly, the second part is way more important than the tax breaks. One of the big issues with medicare that I've heard is that it requires you to use up all your resources prior to being eligible.

 

[Bomb#20]

If I understand it correctly, the second part is way more important than the tax breaks. One of the big issues with medicare that I've heard is that it requires you to use up all your resources prior to being eligible.

That's Medicaid, not Medicare.

 

[coloradoatheist]

If I understand it correctly, the second part is way more important than the tax breaks. One of the big issues with medicare that I've heard is that it requires you to use up all your resources prior to being eligible.

That's Medicaid, not Medicare.

I couldn't remember which but I have heard some stories about draining through savings first.

 

[Loren Pechtel]

If I understand it correctly, the second part is way more important than the tax breaks. One of the big issues with medicare that I've heard is that it requires you to use up all your resources prior to being eligible.

Yup.


Other than the tax-advantaged part this sounds like what one can already do with a special needs trust. It just avoids jumping through the hoops of creating one.