What happens after the death of a beneficiary? Is there a Medicaid payback?

In the event of the death of a beneficiary, the funds from their ABLE account can be used by their estate to repay any outstanding eligible expenses and funeral and burial costs. Remaining funds will be transferred to the estate of the beneficiary. Due to the passage of Senate Bill 1027 during the 2017 legislative session, Medicaid in Oregon is restricted from filing a claim for a payback on funds that were previously in an ABLE account of a deceased beneficiary. However, please note that Medicaid Payback is governed at the federal level, and out of an abundance of caution, there is always the possibility that funds could be recovered by Medicaid.

To learn more about what to expect after a beneficiary’s death, you may wish to review ABLE’s Death of a Beneficiary Form.