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AB 253

Relating to: independence accounts. (FE)

2025-2026 Regular Session Introduced by Scott Allen and 8 co-sponsors

Summary — Assembly Bill 253 (2025) — Independence Accounts (Medicaid Purchase Plan)Status (as of memo): Assembly Amendment 1 recommended for adoption; Committee on Health, Aging an

Presented to the Governor on 4-2-2026
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Bill Summary · AB 253

Summary — Assembly Bill 253 (2025) — Independence Accounts (Medicaid Purchase Plan)

Status (as of memo): Assembly Amendment 1 recommended for adoption; Committee on Health, Aging and Long‑Term Care recommended passage as amended (Ayes 14, Noes 0). Amendment offered Aug 27, 2025; committee action Sept 3, 2025.

Purpose

AB 253 (with Assembly Amendment 1) modifies asset‑limit treatment for participants in Wisconsin’s Medicaid Purchase Plan (MAPP), the Medicaid buy‑in program for adults with disabilities who are employed. The bill (1) changes rules governing “independence accounts” (accounts used to exclude earned income from asset calculations) and (2) creates a new limited inheritance exclusion for MAPP asset determinations.

Key provisions

  • Independence account deposits
    • Current rule (by administrative rule): deposits in an independence account cannot exceed 50% of a person’s gross earned income for the year.
    • As introduced, the bill would have allowed up to $15,000 of gross earnings to be deposited into an independence account over any 12‑month period.
    • Assembly Amendment 1 revises that to permit a person to deposit all of their earned income into an independence account (removing the $15,000 cap). The memo clarifies the bill and amendment do not change separate income‑eligibility requirements for MAPP.
  • Inheritance exclusion
    • The bill originally proposed excluding the full value of assets acquired by inheritance from the asset limit calculation.
    • Assembly Amendment 1 narrows that to exclude up to $40,000 of inherited assets from the asset‑limit determination.
  • No change to income‑eligibility rules: the separate income eligibility threshold for MAPP remains in place.

Who is affected

  • Primary: working adults with disabilities who seek or hold MAPP coverage.
  • Secondary: family members, caseworkers and county/tribal eligibility agencies administering Medicaid/MAPP, and potentially state Medicaid expenditures and program administration.

Potential impact and considerations

  • Practical effect: permitting all earned income to be sheltered in an independence account could make MAPP accessible to more workers by reducing countable assets and simplifying savings for work‑related needs.
  • Fiscal/administrative: broader exclusions of assets (earned income and up to $40,000 of inheritances) may increase program enrollment or change per‑participant costs; the memo does not provide a fiscal estimate.
  • Eligibility safeguards: the amendment retains existing income limits for MAPP, limiting the change to asset treatment only.

Procedural notes

  • Assembly Amendment 1 was adopted by the House committee and passage as amended was recommended (unanimous committee vote). Next steps depend on further floor action (full Assembly vote and subsequent Senate consideration, if applicable).

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

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