ABLE Account Decision Guide Series

Understanding ABLE Account Savings and Public Benefits

In 41 states and Washington, D.C. an SSI beneficiary is automatically eligible for Medicaid. In 34 of those states, there is no need for a separate Medicaid application. In the remaining eight states, a separate Medicaid application is needed and will be approved based on receipt of SSI

SSI-Based Medicaid and ABLE Account Assets

→If getting a current SSI payment
Medicaid will continue in states where the SSI payment means Medicaid eligibility is automatic.

→If SSI payment is suspended, and suspension caused by ABLE account assets above $100,000.
Medicaid eligibility continues indefinitely. Medicaid continues so long as ABLE assets above $100,000 caused the SSI suspension and the person continues to be otherwise eligible for SSI.

→If SSI payment is suspended, and Suspension caused by work and wages – 1619(b) Medicaid.*
Medicaid continues even if ABLE account value exceeds $100,000.**
*The 1619(b) work incentive allows Medicaid to continue when earnings result in a suspension of SSI payments and other SSI eligibility criteria continue to be met. **For example, 1619(b) eligibility may have started several years ago when ABLE account value was well under $100,000. If countable resources, not counting the excess ABLE assets, remain under the resource limit and other 1619(b) criteria are met Medicaid will continue. See POMS SI 02302.000 for policies related to 1619(b).

SSI-Based Medicaid and ABLE Account Distributions

Distributions will not affect Medicaid eligibility. Since Medicaid eligibility is connected to SSI, see SSI policy at POMS SI 01130.740.

↵ restart

Note: Our ABLE Decision Guide Series is designed as an aid to decision making as it relates to establishing and using an ABLE account. This document does not cover every possible issue related to the topic and is not a substitute to more in-depth analysis that may be required in some cases.