My life has been to seek the Absolute Truth of God; to help others find the real purpose of their lives... Attempt to make this or where ever I am; better for my having been there! Amen!
Susanne Brasset has $5 in her bank account. She’s scared to save more.
Brasset,
a 39-year-old freelance photographer in Denver, has cerebral palsy,
which limits her ability to work. To pay her bills, she relies on Social
Security, which she gets because of her disability.
But the
program monitors her bank accounts to make sure she's not putting away
too much money. With more than a few thousand in the bank, she'd be
disqualified for the program, as well as for Medicaid and other crucial
benefits. Unable to plan for the future, Brasset said her finances put
her in a "constant state of anxiety and fear."
“There’s more money I could be making,” she said. “But I’m discouraged by all the rules I need to adhere to.”
*** { The Gov't has gotten extremely controlling in all the mostly useless regulations imposed upon citizens}
Brasset
is caught in a bind familiar to many people with disabilities.
Their well-being relies on government benefit programs, but these
programs impose strict limits on how much recipients can earn and save.
Rules intended to bar freeloaders end up keeping disabled people in a
permanent state of poverty, unable to put money away for
emergencies, retirement, and other life goals.
Susanne Brasset
Source: Susanne Brasset
It's
hardly a fringe issue—some 50 million Americans have disabilities,
ranging from depression and other mental health conditions to chronic
illnesses such as lupus and physical impairments like cerebral palsy and
spinal cord injury—and the problem is starting to get more attention.
Last week's Democratic National Convention featured disability rights
advocate Anastasia Somoza, who has cerebral palsy and spastic
quadriplegia, taking the stage in her wheelchair to deliver a searing speech, as well as video of Donald Trump apparently mocking a disabled reporter by waving his arms around spasmodically.
Now
a handful of states are rolling out a new financial product called an
ABLE account, which could help millions of disabled adults who worry
about losing food stamps, cash benefits, or life-sustaining health
insurance if they accumulate more than a couple thousand dollars. Three
of the states let residents of any other state open an
account. Medicaid, the health insurance program for the poor, covers
some 65 million Americans.
ABLE is
a savings account, created by Congress in 2014, that can be opened by
or for people with a disability that began before they turned 26. Like a
529 college savings plan, ABLE accounts are run by states, which need
to pass legislation of their own to create them. Just as investment
gains in a 529 plan aren’t taxed if the money is used for higher
education, the funds in an ABLE account are tax-free if they go toward
disability-related expenses, a broad category that includes housing,
education, health care, and basic needs.
ABLE goes only so far in
fixing a confusing and frustrating system, but it does create a
much-needed loophole. For some, the account offers a way to prepare for
emergencies. For others, like 35-year-old filmmaker and activist
Dominick Evans, it could let them save money that doesn't count toward
the asset cap so they can work without losing benefits.
Medicaid
is vital for Evans. He was diagnosed with spinal muscular atrophy, a
genetic nerve disorder that weakens muscles, when he was four. Unlike
most other insurance, Medicaid covers the personal care assistants who
help him get out of bed in the morning.
"I would essentially die without home health care," said Evans, who lives in New York's Hudson Valley.
With
the support Medicaid provides, Evans could work more than he does. But,
in a Catch-22, additional income would threaten his Medicaid
eligibility.
“The financial situation for disabled people is
dire,” Evans said. “A major reason is we have to choose between our job
and the benefits we get.”
Dominick Evans
Source: Dominick Evans
Even
marrying his girlfriend could cause Evans to lose Medicaid, because
state programs also monitor a spouse's resources. “There’s so much
frustration,” he said.
Those are the dilemmas ABLE is meant to
resolve. The first ABLE accounts are opening this summer in four states,
with many more states on the way. While Florida’s program will be restricted to residents, the other three states – Ohio, Tennessee, and Nebraska – are also open to people who don't live there.1
The Social Security Administration says it has trained staff members on ABLE accounts.
Still, Brasset, who was surprised to learn she is eligible, said she
recently visited a Social Security office to renew her benefits and
“that person had no idea what an ABLE account was.”
Brasset is
leaning toward signing up for an account with Ohio. She’s hoping she'll
be able to work more now and save the proceeds in her ABLE account.
Relatives will be able to make contributions, too, helping to create a
safety net for major expenses.
“It gives me peace of mind,” Brasset said. “Saving money should be a right to each and every American.”
Strings
are attached. Total contributions, whether by an account holder,
friends, or family, are capped at $14,000 a year. If an account exceeds
$100,000, the holder can lose eligibility for cash benefits from Social
Security's Supplemental Security Income program until the overage has
been spent. When a Medicaid recipient dies, the health insurance program
for the poor can take the contents of an ABLE account as compensation
for the care that was provided.
ABLE accounts can be a valuable
tool for parents of children with disabilities and for adults who get
help from relatives. Families may be eager to make sure disabled
children get the care they need after older relatives die. But parents
and grandparents are often warned not to leave money to people with
disabilities without hiring an attorney to set up a trust.
Doing
so is “a drastic mistake,” said Henry Klosowski, a trusts and estates
lawyer at Moritt Hock & Hamroff, in Garden City, N.Y. Recipients can
lose eligibility for benefits, and their entire inheritance can be
swallowed up by health-care, or even basic, expenses.
Still, ABLE makes it much easier for relatives to give money and to start saving when disabled kids are young.
Jacob
Gehringer is ready to move on from his parents' home in Papillion,
Neb., a suburb of Omaha. The 20-year-old, who has Down syndrome,
graduated from high school and is training to work as a preschool
aide. He and his parents recently opened an ABLE account. His goal: save
for a place of his own, with a backyard where his black Labrador
retriever, Miller, can play.
“I plan to be an independent man,” he said. “I want to take care of myself—and my dog, too.”
(Updates headline to distinguish between Americans with disabilities and those living in poverty.)
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