JUNEAU — Disabled Alaskans would be allowed to save more money without affecting their state and federal benefits under a bill pending in the Alaska House.
The bill would allow Alaskans to make use of the federal Achieving a Better Life Experience, or ABLE, law, designed to allow disabled people and their families to contribute to tax-free accounts to cover expenses like education, housing and transportation. Contributions to the account would be limited to $14,000 a year, with a cap of $400,000. However, people who save more than $100,000 would see their Social Security benefits reduced.
For Maggie Winston, a mother of two from Kenai, the account would supplement the benefits she gets from Medicaid, Social Security and other sources.
Currently, disabled Alaskans cannot save more than $2,000 before losing some or all public benefits, according to the state health department.
For Winston, who was left quadriplegic after contracting a virus at 21, the incident left her facing a fixed income and a tricky set of rules about how much money she can have or save to continue qualifying for the food stamps, Social Security and adult public assistance that gets her through a month.
The result, Winston said, is that despite recently finishing a degree in psychology, she cannot work unless she makes enough money to cover all of her monthly expenses.
“Any sort of extra income affects all of these things and it’s a trickle-down effect,” she said. “So when I moved into my new house that affected everything. Some day if the custody situation changes and there’s child support on either side involved, that affects things. Any extra income at all.”
The Governor’s Council on Disabilities and Special Education estimates that more than 13,700 Alaskans could qualify for accounts.
The state commerce department estimates that it will cost about $194,000 a year to administer the new program.
A provision in the bill allows the state to file a claim against the account to recoup medical assistance payments if the recipient dies.
The bill’s sponsor, Rep. Dan Saddler, R-Eagle River, said in his sponsor statement that the bill is designed to empower Alaskans with disabilities and their families to build financial independence.
Winston agrees.
“Not only does this incentivize me to go to work, because I can save money now, and I don’t need to worry about losing my benefits, it’ll just allow for savings of things that I freak out about like ‘What if my car breaks down?’ or ‘What if my hot water heater breaks?’ — things that I need to save money for,” she said.
