RELATING TO STATE AFFAIRS AND GOVERNMENT -- OFFICE OF HEALTH AND, HUMAN SERVICES
Summary
S2987 amends Rhode Island law governing ABLE accounts, which are tax-advantaged savings accounts for individuals with disabilities. The bill preserves the existing protection of ABLE funds from creditor process, attachment, garnishment, and similar legal actions, and adds a new rule that, after the death of the designated beneficiary, the state may not seek repayment from the account or its proceeds for benefits previously provided, except where federal law requires otherwise.
In practical terms, the bill limits the state’s ability to recover Medicaid or other public assistance expenditures from an ABLE savings trust account after the beneficiary dies. It also clarifies that the beneficiary’s state of residency may still be treated as a creditor of the account upon death, but the state is barred from pursuing reimbursement from the ABLE account itself for covered benefits, aligning state practice with federal ABLE rules to the extent required.
Impact
The bill would amend Section 42-7.2-20.8 of the Rhode Island General Laws, within the chapter on the Office of Health and Human Services. Its main legal effect is to restrict state recovery actions against ABLE accounts after a beneficiary’s death, thereby strengthening protections for disabled beneficiaries’ savings and limiting the state’s post-death reimbursement rights. The change affects ABLE account holders, their estates, and state agencies that administer or seek repayment for public benefits.
Sentiment
The available materials suggest a generally supportive or noncontroversial posture toward the bill. The caption and explanation frame it as a consumer- and disability-protection measure that prevents the state from reaching into ABLE accounts after death, and there is no recorded committee testimony or vote history indicating opposition. The bill appears to be presented as a narrow technical clarification rather than a broad policy change.
Contention
The only notable point of potential contention is the limitation on state reimbursement rights, which could reduce the state’s ability to recoup expenditures made on behalf of a deceased beneficiary. That issue would primarily concern state agencies responsible for benefit recovery and fiscal administration. On the other side, disability advocates and ABLE account holders would likely favor the bill because it protects savings intended for individuals with disabilities and their families.
Prohibits the state from seeking reimbursement for expenditures made on behalf of disabled Rhode Islanders from an ABLE account after death of the designated beneficiary.
Prohibits the state from seeking reimbursement for expenditures made on behalf of disabled Rhode Islanders from an ABLE account after death of the designated beneficiary.
Exempts individual retirement accounts as a countable resource for public assistance. This act also prohibits the state as a creditor against an ABLE account in the event of death of a beneficiary.
Requires the executive office of health and human services to increase Medicaid payment rates for primary care services furnished by primary care providers to be commensurate with Medicare rates.
Authorizes office of health and human services (EOHHS) to establish coverage for obesity treatments, including medication. Office of health and human services would seek a 1115(a) waiver.
Requires the secretary of the executive office of health and human services to monitor and mandate changes to the price-setting practices of pharmacy benefit managers to prohibit the spread pricing payment model.
Requires the secretary of the executive office of health and human services to monitor and mandate changes to the price-setting practices of pharmacy benefit managers to prohibit the spread pricing payment model.
Requires the executive office of health and human services to apply to the Centers for Medicare and Medicaid Services for a state plan amendment for reimbursement for health services in a school.
Requires the executive office of health and human services to apply to the Centers for Medicare and Medicaid Services for a state plan amendment for reimbursement for health services in a school.
Prohibits insurance companies from paying a rate that is less than the approved Medicaid rate set by the executive office of health and human services.