1. ABLE Accounts and Medicaid Payback

2. What’s an ABLE Account?
New tax-free savings tool for qualified individuals with disabilities
Doesn’t affect eligibility for means-tested government benefits
Similar to 529 College Savings Plan

3. ISM and SSI
Supplemental Security Income (SSI) is intended to pay for food and housing
Money from third parties used to cover such expenses is considered In-Kind Support and Maintenance (ISM)
Includes distributions from special needs trusts
ISM lowers individual’s monthly SSI payments

4. Important ABLE Benefit
ABLE account, regardless of funding source, can be used to pay for shelter and household operating expenses without affecting Supplemental Security Income (SSI)

5. Typical Expenses Rent Mortgage payments
Home insurance (if required by mortgage terms)
Real Property taxes
Heating fuel
Gas
Electricity
Water
Sewer
Garbage removal

6. SSI Example Someone pays directly for SSI recipient’s rent:
Monthly SSI could drop by up to $265, or $3,180 annually
Someone contributes same funds to SSI recipient’s ABLE account:
ABLE distribution could pay for rent without affecting SSI