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Bill

SB 2396

Medicaid estate recovery; prohibit application to obtain funds from ABLE accounts.

2025 Regular Session

Mississippi prohibits Medicaid from seizing funds from ABLE accounts (disability savings) to recover program costs, protecting disabled individuals' financial independence efforts.

Approved by Governor
#medicaid
0
WeVote Research Nonpartisan
Bill Summary · SB 2396

Legislative bill overview

SB 2396 prohibits Mississippi's Medicaid program from recovering costs by seizing funds from ABLE accounts (Achieving a Better Life Experience accounts). ABLE accounts are tax-advantaged savings accounts designed for individuals with disabilities to accumulate funds without losing eligibility for means-tested benefits. This bill protects these disability savings accounts from Medicaid estate recovery claims.

Why is this important

Medicaid estate recovery allows states to recoup costs paid for beneficiary care by claiming against their estates after death. Without this protection, individuals with disabilities could lose hard-earned savings specifically designed to help them achieve independence and financial security. This bill ensures disabled individuals can build modest wealth through ABLE accounts without fear of government seizure.

Potential points of contention

  • Fiscal impact on Medicaid: Prohibiting recovery from ABLE accounts reduces state revenue that would otherwise offset Medicaid expenditures, potentially increasing costs to taxpayers or requiring cuts elsewhere
  • Fairness concerns: Some argue estate recovery from other beneficiaries' assets funds Medicaid for future recipients, so exempting ABLE accounts shifts burden to non-disabled populations
  • Scope limitations: The bill addresses only ABLE accounts; Medicaid can still recover from other estate assets, which may create questions about consistency in disability protections

Compiled from official sources — confirm details with the bill’s official record.

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