Bills › 88th General Assembly
Relating to transfer between trusts for persons with disabilities
Topics:Health careMedicaid
Where it is now
- Done: IntroducedJanuary 22, 2020
- Done: SubcommitteeFebruary 11, 2020
- Done: House committeeFebruary 20, 2020
- Done: Passes the HouseMarch 4, 2020
- Done: Senate committeeJune 4, 2020
- Stopped: Passes the SenateDied when the General Assembly ended
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2020 session adjourned on June 14, 2020, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
This bill relates to trusts for persons with disabilities. The bill provides that any funds retained in a medical assistance special needs trust or in a supplemental needs trust of a beneficiary with a disability who is also a designated beneficiary of an Iowa ABLE saving plan trust account may be transferred to the Iowa ABLE savings plan trust account of the designated beneficiary in accordance with the provisions of the Code chapters applicable to the specific trusts. The disabilities expenses savings plan trust is also known as the Iowa ABLE savings plan trust which was established as a qualified ABLE program under section 529A of the Internal Revenue Code.
Read the full explanation
The purpose of ABLE savings accounts is to encourage and assist individuals and families in saving private funds for the purpose of supporting individuals with disabilities to maintain health, independence, and quality of life and to provide secure funding for disability-related expenses on behalf of designated beneficiaries with disabilities that will supplement, but not supplant, benefits provided through private insurance, the Medicaid program, the federal supplemental security income program, and other sources. ABLE savings accounts allow eligible individuals the opportunity to save and fund a variety of qualified disability expenses without endangering eligibility for certain benefits such as Medicaid and supplemental security income.
House subcommittee
Named February 11, 2020. On February 17, 2020 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill allows funds from certain special needs trusts to be transferred into an Iowa ABLE savings account for a person with a disability. The fiscal impact of this bill cannot be determined because the amount of money in Supplemental Needs Trusts is unknown. While up to $16.2 million could be transferred from Medicaid Special Needs Trusts, the bill could also lead to fewer Medicaid recoveries or increased Medicaid costs.2
Read the fiscal note
Description
House File 2526 allows any funds retained in a Medicaid Special Needs Trust or in a Supplemental Needs Trust of a beneficiary with a disability who is also a designated beneficiary of an Iowa ABLE (Achieving a Better Life Experience) savings plan trust account to be transferred to the Iowa ABLE account of the designated beneficiary.
Background
ABLE accounts allow individuals and families to save for qualified disability expenses without losing eligibility for certain assistance programs, like Supplemental Security Income (SSI) and Medicaid. The earnings on investments are federally tax-deferred and tax-free if used for qualified disability expenses. ABLE accounts are limited to $100,000 without affecting Medicaid eligibility. In addition, ABLE accounts may be canceled at will, with the account owner receiving the account balance.
Assumptions
- As of January 24, 2020, there were 364 Medicaid Special Needs Trusts monitored by the Department of Human Services (DHS), with a total of $50.1 million invested.
- 265 accounts have less than $100,000, for a total of $6.3 million.
- 99 accounts have over $100,000, of which $100,000 may be available to move to ABLE accounts under this Bill, for a total of $9.9 million.
- Supplemental Needs Trusts may also be impacted. The DHS does not have data on the number of Supplemental Needs Trusts or monitor their account balances.
Fiscal Impact
The fiscal impact of this Bill cannot be determined. If all Special Needs Trust beneficiaries qualify for an ABLE account, up to $16.2 million could be transferred, in addition to the unknown impact from the Supplemental Needs Trusts. This could result in fewer potential Medicaid recoveries due to less rigid guidelines to withdraw funds from an ABLE account or to cancel the account and receive the balance. Special Needs Trusts have increased annually, so the impact may increase over time. Medicaid costs may also increase as individuals who are currently ineligible for Medicaid transfer their assets between beneficiaries and trusts in order to qualify for Medicaid.
Source
- Department of Human Services
- Achieving a Better Life Experience (ABLE) Accounts · March 3, 2020
Iowa Code it changes
Lobbying
6 for · 0 against · 17 undecided · Who →
Family tree
88th General Assembly
Picked up later
Earlier and later bills are matched by wording or an identical title.
Similar bills
- HF 595 Relating to the transfer between trusts for persons with disabilities89th General Assembly · Renumbered as HF 835Nearly identical
Matched by wording or an identical title.