Prohibits the state from seeking reimbursement for expenditures made on behalf of disabled Rhode Islanders from an ABLE account after the death of the designated beneficiary.

Plain-English Summary

This bill deals with special savings accounts called ABLE accounts, which are tax-advantaged accounts that people with disabilities can use to save money for disability-related expenses without losing eligibility for government benefit programs like Medicaid. Under current federal rules, when a person with an ABLE account passes away, a state that provided Medicaid benefits to that person *can* file a claim to recover some of those costs from whatever money remains in the account. This bill would prohibit Rhode Island from doing that.

In practical terms, this means that if a Rhode Islander with a disability passes away with money remaining in their ABLE account, the state would not be allowed to seek repayment for any Medicaid or other assistance it provided during that person's lifetime. Any remaining funds in the account would instead go to the person's family, heirs, or whoever is designated to receive them.

This bill primarily affects Rhode Islanders with disabilities who have or are considering opening an ABLE account, as well as their families. Supporters of similar measures argue that the threat of state reimbursement discourages people from saving in ABLE accounts in the first place. The bill would potentially reduce the amount of money the state could recover from deceased beneficiaries' accounts, which could have a modest financial impact on state revenues. The bill has been referred to the House Finance Committee for further review.