Page 95

Title 8: Medicaid Page 91 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Specific Non-MAGI-Related Resources Revised September 13, 2024 ABLE Account ABLE Account (Cont.) Assets in an ABLE account and distributions from the account for qualified disability expenses would be disregarded when determining the designated beneficiary’s eligibility for Medicaid.

SSI excludes up to and including $100,000 of the balance of funds in an ABLE account from resources of the designated beneficiary. If an ABLE account exceeds $100,000, SSI will not terminate the recipient, however they will suspend them.

For Medicaid, a beneficiary will not lose eligibility for Medicaid based on the assets held in their ABLE account, even during the time that SSI benefits are suspended (as described above for the account with over $100,000).

A distribution from an ABLE account is not income but is a conversion of resource from one form to another. Do not count distributions from an ABLE account as income to the designated beneficiary. AIDS/HIV Settlement Payments Exempt settlement payments from any fund established pursuant to the class action settlement of Susan Walker v. Bayer Corporation et al, 96 C5024(N.D. Ill.), as a resource. Some settlement payments were made in lieu of the class action settlement. These payments are also exempt as a resource. These settlements were signed on or before December 31, 1997. These funds must be kept in a separate, identifiable account.

Payments from the original settlement or the Ricky Ray Hemophilia Relief Act of 1998 are exempt as a resource.