Disabilities: other; designation of a survivor beneficiary for ABLE accounts and exemption from Medicaid estate recovery program; provide for. Amends secs. 2, 7, 8 & 17 of 2015 PA 160 (MCL 206.982 et seq.). TIE BAR WITH: HB 5922'26

Michigan House Bill 5923 proposes changes to the state's ABLE (Achieving a Better Life Experience) savings program, which allows individuals with disabilities to save money without affecting their eligibility for public benefits. The bill introduces two main provisions: 1) It allows account holders to designate a successor beneficiary who can inherit the ABLE account upon the original beneficiary's death, provided the successor is also eligible. 2) It exempts ABLE accounts from being claimed by the Medicaid estate recovery program after the beneficiary's death, ensuring that funds in these accounts are protected from being used to reimburse Medicaid expenses.

Supporters of HB 5923 argue that the bill strengthens financial security for individuals with disabilities by allowing the transfer of ABLE accounts to eligible successors and protecting these funds from Medicaid estate recovery. This ensures that savings intended to improve the quality of life for people with disabilities remain within their families or designated beneficiaries, promoting long-term financial planning and stability.

Critics of HB 5923 express concerns that exempting ABLE accounts from Medicaid estate recovery could reduce funds available to the Medicaid program, potentially impacting its sustainability. They argue that while protecting individual savings is important, it should not come at the expense of the broader healthcare system's financial health.