Does the Medicaid recapture of funds in an ABLE account as described in the Federal ABLE ACT known as “clawback” apply to Alabama ABLE accounts?
As established by the Federal ABLE Act, funds remaining in the account upon the beneficiary’s death, after final expenses are paid, may be subject to reimbursement to the state for Medicaid-related services. Medicaid must initiate reimbursement. The amount of any Medicaid payback is calculated based on amounts paid by Medicaid after the creation of the ABLE Account and excludes amounts paid by the beneficiary as premiums to a Medicaid buy-in program.
Under Alabama law, an agency or instrumentality of the State of Alabama may not seek payment from an ABLE account or its proceeds for any amount of medical assistance paid for the designated beneficiary unless required by federal law.
Read the full guidance from Centers for Medicare and Medicaid.