To
care for a child with a disability is a monumental task. It will consume the
lives of people around him/or her. It will strain all parties emotionally and
physically, but perhaps most of all, financially. The financial burden can
range anywhere from a couple hundred thousand to millions. The financial
struggle covers every aspect of life- from transportation to aid care to
medical care. When the child grows up, the battle does not end.
In
America, we have a system known as social security. In terms of financial help
for those with disabilities, we have two programs under the system of social
security; these programs are known as supplemental security income (SSI) and
social security disability insurance (SSDI). These programs provide financial
assistance but perpetuate a permanent second class because, to qualify for
these programs, individuals can only take a minimum of an income in the bank.
The exact maximum number for a payment allowed is $2,000 in cash assets. Along
with these programs, a person with disabilities can rely on Medicaid and
Medicaid waivers to provide specific assistance such as aid care services and,
in some cases, transportation. Although the financial aid provided by SSI and
SSDI is excellent, the system has its drawbacks. As I asserted
before, the current system perpetuates a second class mentality because
individuals are not treated like their peers. It also perpetuates a desire not
to work in some cases because individuals on SSI or SSDI may lose their
benefits if they even get a full-time job. Will the system ever change?
The
answer to that question is hopefully, yes. The hope comes in the form of
something known as the ABLE Act or The Achieving a Better Life Experience Act.
The act was first introduced in 2013 by a bipartisan group of Congressman,
including Senators Robert Casey, Jr., and Richard Burr. So what did they teach
exactly? They introduced a bill that, in theory, will better the lives of
persons with disabilities significantly. Currently, there are 58 million people
with disabilities in the United States. Through negotiation and compromise, the
bill was signed into law in later December 2014. One of the compromises made is
that the bill would cover those with “a significant disability.” It is
estimated that 10 percent of the 58 million disabled people in the U.S. would
qualify under this term, approximately 5.8 million people.
Since the passage of the law, there have been several
questions about what exactly are ABLE Accounts and what they cover. An ABLE account
is a tax advantage savings account, which is not the same as a special interest
trust or a pooled fund. These accounts are tax-exempt accounts, which can cover
qualifying expenses while not taking away from a person’s illegibility for
Medicaid. The qualifying expense categories are aid care, medical,
transportation, and housing. Other questions about ABLE Accounts have also
risen; for example, what amount can one put into an ABLE account per year. Once
ABLE Accounts are established by the end of 2015, individuals can develop
ABLE Accounts and put up to $14,000 a year into the account. It is essential to
know these accounts are not a save all but should be used to supplement other
options such as disability trust.
The hope that ABLE Accounts can provide is excellent; no
longer will persons with disabilities have to be confined to a financial second
class. The regulations have not been written and are only in the works; one
will have to wait and see how the act is translated from paper to action. One
can only be optimistic and hope that the action will speak as loud as the
legislation does.
Until next time, thanks for reading, fear nothing and regret
less
