Michigan House Bill HB5923

Michigan 2025-2026 Regular Session

• Introduced: 4/29/26
• Refer: 4/29/26

Caption

Disabilities: other; designation of a survivor beneficiary for ABLE accounts and exemption from Medicaid estate recovery program; provide for. Amends secs. 2, 7, 8 & 17 of 2015 PA 160 (MCL 206.982 et seq.). TIE BAR WITH: HB 5922'26

Impact

The proposed changes aim to streamline the eligibility processes and financial protections associated with ABLE accounts, ensuring that the funds in these accounts are not counted against individuals when determining eligibility for state assistance programs. This means that earnings on ABLE accounts will remain exempt from income calculations that affect public benefits, thereby encouraging individuals with disabilities to save for their future without the fear of losing out on essential support services. This could significantly influence financial strategies for families and individuals benefiting from such programs.

Summary

House Bill 5923 amends the existing Michigan Achieving a Better Life Experience (ABLE) Program Act established in 2015. The primary aim of this amendment is to provide clarity and enhancements regarding ABLE savings accounts that are designated for individuals with disabilities. Key sections amended include definitions of account ownership, the handling of funds upon the death of the designated beneficiary, and the treatment of ABLE account savings concerning various state assistance programs. Through this bill, the state seeks to align its ABLE program with federal standards as outlined in the Internal Revenue Code, specifically Section 529A.

Contention

Debate around this bill may focus on the implications of public funding and how these changes will affect existing programs. Some advocacy groups may raise concerns about whether the amendments adequately address the accessibility of the program for all individuals with disabilities, especially those from lower-income backgrounds. Additionally, the impacts of account management and roles defined for 'designated representatives' could also be points of contention, particularly regarding the autonomy of individuals with disabilities in managing their accounts.

Notable_points

Another important aspect of the bill includes the specification that funds remaining in an ABLE account after the death of the beneficiary are not subject to claims under the Michigan Medicaid estate recovery program, providing critical financial protection for beneficiaries against liquidation of assets. This amendment is significant in ensuring that individuals can save for their needs without the risk of exhausting their financial support in the wake of medical needs or legal claims against them.