CHARLESTON, W.Va. — Legislation that would let people with disabilities set up savings accounts to cover future housing, transportation and other expenses without jeopardizing their eligibility for Medicaid and Social Security benefits is waiting on action from the U.S. Senate in the closing days of the 2014 session.
Last week, the U.S. House of Representatives overwhelmingly approved the Achieving a Better Life Experience Act or ABLE Act.
“It’s about equality and financial stability for people with disabilities,” said Michelle Norweck, director of West Virginia’s Fair Shake Network, a cross disability advocacy organization. She supports the legislation and has been following its progress on Capitol Hill.
“This is a piece of legislation that will really positively impact the lives of people with disabilities because it’s going to allow for families and individuals with disabilities to have equal rights to a savings account that anybody who is not disabled would have,” she said.
Currently, people with disabilities cannot qualify for Medicaid and Social Security disability benefits if they have more than $2,000 in assets or earn more than roughly $680 per month.
It’s a personal issue for Norweck who has a son with a developmental disability. “He’s only 11, but he’s very healthy and very likely to outlive his father and I and we, like with our other two children, would like to put in a savings account money for their future,” she told MetroNews.
“We have the same hopes and dreams for our son with a disability as we do with our other children,” Norweck continued. “But, because he has a disability, we are also very much aware of the fact that he may or may not have the option of being employed in the future, so we want to make sure that there are protections in place.”
As proposed in the ABLE Act, the savings accounts would function much like the 529 college savings accounts that are already established in many states like West Virginia. Those accounts would be tax-exempt when used for qualified disability expenses.
By definition, “qualified disability expenses” would include expenses for education, a primary residence, transportation, obtaining and maintaining employment, health and wellness, and other personal support expenses.
“It truly is a wonderful piece of legislation that should have been passed a long time ago,” said Norweck.
The U.S. House approved the ABLE Act with a 404-17 vote last week. West Virginia’s three U.S. House members, 1st District Congressman David McKinley (R-W.Va.), 2nd District Congresswoman Shelley Moore Capito (R-W.Va.) and 3rd District Congressman Nick Rahall (D-W.Va.), voted for it.
“We already have 401K accounts that help us save for our retirement, health savings accounts, and 529 accounts to save for our children’s college education,” McKinley said in a statement after the House vote. “Why shouldn’t we give millions of Americans with disabilities similar opportunities?”
If the U.S. Senate does not take up the legislation this week, the bill will have to begin the path to passage again in the new Congress come January.