Does the Medicaid recapture of funds in an ABLE account as described in the Federal ABLE ACT known as “clawback” apply to Maryland ABLE accounts?
As established by the Federal ABLE Act, funds remaining in the account upon the beneficiary’s death may be used to reimburse the state for Medicaid-related services. 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 Maryland law, an agency or instrumentality of the State of Maryland 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.