433-4     ABLEAchieving a Better Life Experience ACCOUNT

An ABLEAchieving a Better Life Experience account is a tax-advantage account, similar to a Section 529 qualified tuition program (QTP). An ABLEAchieving a Better Life Experience account can be administered by any state that allows an ABLEAchieving a Better Life Experience account.  They must be established for the benefit of the individual.   The designated beneficiary is also the owner of the account.

The ABLEAchieving a Better Life Experience account balance is an exempt resource for all public assistance programs and distributions from an ABLEAchieving a Better Life Experience account for qualifying disability expenses will not be counted as income.

1. Who is eligible for an ABLEAchieving a Better Life Experience account?

To be eligible for an ABLEAchieving a Better Life Experience account, a person must be blind or disabled according to the Social Security definition of disability by a condition or conditions that began before age 26.  Eligible individuals are limited to one ABLEAchieving a Better Life Experience account.

Generally, ABLEAchieving a Better Life Experience accounts may not receive aggregate contributions during a taxable year in excess of the annual gift tax exemption. Below is a table of the maximum contributions allowed per year. The maximum balance for an ABLEAchieving a Better Life Experience account in Alaska is $400,000 but each state is allowed to set a maximum for their state.

2. Will ABLEAchieving a Better Life Experience account balance count towards the SSISupplemental Security Income resource limit?

For SSISupplemental Security Income purposes, the first $100,000 in an ABLEAchieving a Better Life Experience account is excluded as a resource.

3. What happens if an SSISupplemental Security Income recipient has excess resources held in an ABLEAchieving a Better Life Experience account?

If an individual is ineligible for SSISupplemental Security Income due to excess resources held in an ABLEAchieving a Better Life Experience account, the SSISupplemental Security Income benefits will be suspended without a time limit, but the SSISupplemental Security Income benefits will not be terminated.  The SSISupplemental Security Income recipient would remain eligible for Medicaid while in suspense.

4.  Are ABLEAchieving a Better Life Experience accounts transferable?

ABLEAchieving a Better Life Experience accounts are transferable to family members who are also qualified individuals.

5.  What distributions are allowed from ABLEAchieving a Better Life Experience accounts and what is their impact on SSI benefits?

ABLEAchieving a Better Life Experience accounts can be used for Qualifying Disability Expenses (QDEs).  QDEQualifying Disability Expensess are expenses for items or services needed to maintain or improve your health, independence or quality of life.  QDEQualifying Disability Expensess are not limited to expenses for which there is a medical necessity.  

QDEQualifying Disability Expensess include education, housing, transportation, employment training and support,  assistive technology, personal support services, health prevention and wellness, financial management, administrative services, legal fees, expenses for oversight and monitoring and funeral and burial expenses.

Qualifying distributions from the ABLEAchieving a Better Life Experience account would not generally affect SSISupplemental Security Income eligibility or payment amount.

6. Retained distributions for a non-qualifying purpose or housing costs are countable the month after the month of receipt.

Example:  Riley takes a distribution of $500 from her ABLEAchieving a Better Life Experience account in May to pay her rent in June.  She deposits the $500 into her checking account in May, withdraws $500 in cash on June 3, and pays her landlord.  This distribution, which is a housing related qualified distribution, is part of her checking balance as of the first of the month in June, which makes it countable resources for the month of June.

7. Achieving a Better Life ExperienceABLEAchieving a Better Life Experience account does not replace the need for a Medicaid Qualifying Income Trust.

An ABLEAchieving a Better Life Experience account is an allowable way for a disabled individual to save more than the Medicaid resource limit but does not reduce an individual's countable monthly income.  

If an individual has too much countable monthly income to qualify for Medicaid benefits, only an approved and properly funded Medicaid Qualifying Income Trust (Millers Trust, Special Needs Trust, or Pooled Trust) can reduce their countable monthly income in order to establish Medicaid eligibility.

8.  Certain employed ABLEAchieving a Better Life Experience account beneficiaries may make additional contributions.

ABLEAchieving a Better Life Experience account owners who work and do not have an employer-sponsored retirement account may save up to $18,210 in additional savings from their earnings.  The additional contribution is limited to the poverty line amount for a one-person household in Alaska.  The designated ABLEAchieving a Better Life Experience account beneficiary is not eligible for the additional contribution if their employer contributes to a workplace retirement plan on their behalf.

9.  What are the caseworker responsibilities with an ABLEAchieving a Better Life Experience account?

The following process must be followed for all initial applications when Medicaid is being established for an individual with an ABLEAchieving a Better Life Experience account.

• Request and obtain a copy of the ABLEAchieving a Better Life Experience account enrollment paperwork.
   
• Request and obtain a copy of the ABLEAchieving a Better Life Experience bank account showing when the account was opened and the monies being deposited into the account.
   
• Email the following information to the DHCS TPLThird Party Liability at dmatpl@alaska.gov:
   
  1. Copy of the ABLEAchieving a Better Life Experience account enrollment paperwork, and
      
  2. Completed ABLEAchieving a Better Life Experience Account Reporting form (MED 19) located under e-forms.

The following process must be followed at renewal:

1. Review the file to ensure that we have a copy of the ABLEAchieving a Better Life Experience account enrollment paperwork.  If not, request a copy.
    
2. Request current bank statement, review for discrepancies by:
   
   a. Reviewing balance, and
   
   b. Compare current balance with balance from previous year renewal to ensure that the funds have been used appropriately.
    
3. If there are any discrepancies;
   
   a. Request statements from past 12 months, and
   
   b. Discuss use of the ABLEAchieving a Better Life Experience account with the client and clarify appropriate use of the account.

The following process must be followed when closing a case with an ABLEAchieving a Better Life Experience account:

1. Determine the reason for closure.  If the closure was because of death:
   
   a. Enter the date of death on the MERE screen,
   
   b. Close out the TPR and MCR segments on the MERI screen using the actual date of death and close out the MCR segment with the last day of the month in which they died, and
   
   c. Send a closure notice and email a copy to the DHCS TPL Unit at dmatpl@alaska.gov.