Bills Introduced to Congress Will Provide for Disabilty Savings Accounts & Financial Security Accounts for the Care of Family Members with Disabilities

Link: New Legislation

On March 11, 2008 legislation was introduced into Congress by Senator Dodd (D-CT) and Senators Casey (D-PA) and Hatch (R-UT), which would allow for the creation of disability savings accounts and financial security accounts by family members of individuals with disabilities. These bills would serve to amend the Internal Revenue Code of 1986.

Senator Dodd's bill is the Disability Savings Act of 2008, S.2741, which would provide for the creation of disability savings accounts, that are exempt from taxation under $250,000. The purpose of this bill is to encourage individuals with disabilities and their families to save private funds to support and assist them in maintaining their health, independence, and quality of life. It would also serve to provide secure funding for disability-related expenses to supplement benefits that are already provided through private insurance and Medicaid.

The Financial Security Accounts for Individuals with Disabilities Act of 2008, was introduced by Senator Casey, on behalf of himself and Senator Hatch. It would serve much the same purpose of the Disability Savings Account Act of 2008, however this bill specifically provides for the creation of financial security accounts. These accounts would be exclusively for the purpose of paying qualified disability expenses of an individual who is disabled and who is the designated beneficiary of the account. These accounts would also be exempt from taxation.

Legislation along these same lines has already been introduced in the House of Representatives by Representative Crenshaw (R-FL) in May 2007. It is called the Financial Security Accounts for Individuals with Disabilities Act of 2007, H.R.2370, and provides for the creation of the same types of acounts noted in Casey/Hatch bill.

All of this legislation serves to further the idea that individuals with disabilities are a major part of American society, and deserve the right to live independently, to fully participate in their communities, and to exert control and choice over their own lives. These bills encourage all of these ideals, and also take into account the fact that individuals with disabilities incur significant additional costs for services necessary for their care and to maintain their independence.