New law lets disabled people save more money

Pima County residents who live with a significant disability can now do something they likely never had the chance to before: Open a savings account.

While Arizona is still planning how it will carry out the federally mandated 2014 ABLE Act, Ohio on Thursday became the first state to offer the service, and residents from other states can get their accounts started online with Ohio’s Stable Accounts. (ABLE stands for Achieving a Better Life Experience.)

Tucson attorney Robert Fleming works with individuals and families whose lives are affected by a disability, and he has been following the changes closely.

Previously, a person with a disability could only have $2,000 in assets in order to qualify for publicly funded help, such as medical care through Arizona’s Health Care Cost Containment System. Now, with the 2014 passage of the ABLE Act and the accounts becoming available, individuals can open a separate account in which they can deposit up to $14,000 annually. The account can carry a balance of no more than $100,000 if the person is to maintain all benefits.

People who open the accounts will “have more control and autonomy and dignity,” Fleming said.

He said many people who qualify are living on a fixed income and often need to save for work on their teeth, which isn’t covered as part of government-subsidized care. Other high-cost needs include transportation or household items, such as a computer.

People can also save to fulfill a lifelong dream, like going to Disneyland or taking a cruise.

People can find a list of qualified disability expenses online by searching the ABLE Act.

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“You can’t use it for anything except qualified disability expenses, but that list is pretty broad,” Fleming said. “It’s certainly better than what there was before, which was nothing.”

The ABLE Act is “positive news,” said Diane Quihuis, who is interested in setting up an account for her 30-year-old son, who works at Tucson’s Beacon Group. Beacon offers employment and employment services for people living with a disability.

Saving money has been challenging, she said. Her son receives a modified supplemental security income (SSI) amount because he gets paid at work. An ABLE account will offer him new chances to save some money.

“This will be a great benefit because right now you are confined to that specific dollar amount,” she said.

Families at Beacon are excited, said Ken Brailsford, the nonprofit’s program manager.

“It’s a huge deal,” he said. “The families are very excited about this opportunity to be able to save money.”

Skip Woodward, whose 40-year-old son also works at Beacon, said they have had to be vigilant for years to ensure that his son’s account doesn’t go over the limit. Otherwise, he’d lose coverage for the many medications he needs for diabetes and seizures.

“Because he could never accrue money of $2,000, we had to constantly watch his account,” he said. “If he lost his benefits, we’d have to get back in line.”