An Act To Prevent Medicaid Payment from a Savings Account Established under the Federal ABLE Act of 2014
Maine Legislature, Session 129, LD 1637
Committee: Health and Human Services
Sponsors: LIBBY, RILEY, BRYANT, FAY, KESCHL, MADIGAN
Amends: 5 MRSA §156, 36 MRSA §5122

Legislative Document
No. 1637
S.P. 526
In Senate, April 25, 2019
An Act To Prevent Medicaid Payment from a Savings Account 
Established under the Federal ABLE Act of 2014
Submitted by the Treasurer of State pursuant to Joint Rule 204.
Reference to the Committee on Health and Human Services suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator LIBBY of Androscoggin.
Cosponsored by Representative RILEY of Jay and
Representatives: BRYANT of Windham, FAY of Raymond, KESCHL of Belgrade, 
MADIGAN of Waterville, McLEAN of Gorham.
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.