2 thoughts on “Guidance issued on ABLE Accounts, Medicaid and SSI

  1. Ok… Here’s a question for you.
    If income is put into an Able account, is it still countable income for the purposes of determining Medicaid income limits? I am trying to figure if income put into an Able account becomes exempt income.

    My son is eligible for Medicaid because he is disabled. But he receives income. (It is Social Security Disability Auxiliary income, a benefit he gets because his mom is also disabled.) I don’t want his income to disqualify him for Medicaid. And I don’t want to give the income directly to Medicaid, I’d like to put it in an Able account.

    It is my understanding that if I put this Auxiliary SSD income into an Able account, the income will no longer be counted as income for Medicaid. I found this reference which says, “Exclude contributions to an ABLE account from the income of the designated beneficiary” That’s from the Social security Program Operations Manual System (POMS).

  2. Dear Dan,
    A qualified individual can transfer either income or resources into an ABLE account. This is a post-eligibility transfer, since he’s receiving his income first, and then transferring it (instead of spending it all in the month of receipt). So for eligibility purposes, the total gross income is what’s counted. In other words, in a given state, a Medicaid program may have an income cap for eligibility. If total gross income exceeds the cap, there either won’t be eligibility or the person will have to comply with the State’s spend-down or Miller Trust requirements.

    Linda Ershow-Levenberg

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