When Nebraska became the third state to create an Enable Savings Plan, which allows tax-free savings for individuals with disabilities without impacting their ability to access Medicaid and other federal aid, the Munroe-Meyer Institute was an important partner.
“MMI has had staff, particularly Kim Bainbridge, who have worked with not only the legislation that got passed, but also with First National Bank to institute the program,” said Wayne Stuberg, Ph.D., associate director of MMI. “With Nebraska being the third state in the U.S. to implement this plan, we’ve been on the cutting edge of making this available for families and individuals who have special needs.”
Previously, individuals could have no more than $2,000 in savings to qualify for Medicaid.
Bainbridge, whose son has Down syndrome, spoke of the frustrations the limit caused.
“My son Justin is 27 years old, and for the first time ever, I’ve been able to save for him,” she said. “Before, this $2,000 limit hung over you. In the past, I’ve had to go out and buy frivolous things to make sure he was under the $2,000 limit. Now I can take that money and I can put it into savings.
“It’s usually not very much — it’s not like I’m sitting out there with a lot of money — but I’ve gone out and bought clothes or something like that only to get him under the $2,000 limit, and to me that’s ridiculous.”
Denise Gehringer, an MMI board member as well as program coordinator of the Ollie Webb Center, Inc., was one of the most dedicated proponents of the plan.
“The ABLE Act and the launching of Enable accounts is a life-empowering event for individuals with disabilities,” she said. “They and their families now have a tool to save, plan and dream for their future just like every other American does.”
Dr. Stuberg praised State. Sen. Kate Bolz of Lincoln and state treasurer Don Stenberg for their leadership in creating the accounts.
“Sen. Bolz and treasurer Stenberg really took a phenomenal leadership role in being able to make this happen,” he said. “There was a need, and then there was leadership at the state level and in our legislature. And of course, there’s always the families. They supported this, and as soon as (state officials) announced it, they were signing up.”
With the new plan, her son has been able to increase his work hours, Bainbridge said.
“Justin has two jobs, and on his second job, his supervisor keeps giving him more hours,” she said. “Now I can save the money. I don’t have to go into her and say, ‘You have to cut his hours, because I’m too close to the $2,000 limit.'”
In addition, Dr. Stuberg said, the new plans level the playing field in terms of wages.
“It takes away the idea that an employer can pay somebody less because they have special needs, ‘because they can’t have more than $2,000,'” he said. “There was a hidden incentive in the system to underpay individuals who have special needs, because there was this $2,000 cap on their medical health benefit. Now that’s gone.”