The ABLE Act, signed into law in 2014, allows families to save money in tax-exempt accounts for disabled family members so they have financial support to live independently. While intended to help those with any disability, it was initially created for those with autism due to the high costs associated with autism treatments and care. As more children are diagnosed with autism, the costs to families and society are rising significantly. The ABLE Act empowers disabled individuals by allowing them to save money for expenses without losing eligibility for important benefits, helping them to pursue independence and contribute to their communities.

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Lisa Gardner
Professor Kramer
CAS 138T
6 April 2016
ABLE to Pursue Their Own Happiness
In the early 19th century, it was common practice to institutionalize intellectually
disabled people. Instead of trying to understand how they could contribute to their community,
their family would take them out of society altogether. Today, we have shifted to a more humane
and pragmatic approach. We work with families to improve their children’s quality of life. More
importantly, we try to empower people to succeed and to contribute to society in their own way.
The Achieving a Better Life Experience (ABLE) Act, which was signed into law by President
Barrack Obama in December 2014, allows families to save money for their disabled family
members, so that they will have the financial support they need to live independently. The ABLE
Act will not go into effect in Pennsylvania, however, until it is passed in the state legislature and
signed into law by the Governor. If implemented, the ABLE Act will alleviate the financial
burdens of disabled adults and their families without putting the onus on society.
While the ABLE Act may be applied to several disabilities, the bill was initially created
to help Autistic individuals, due to the high costs associated with the disorder. Autism Spectrum
Disorders (ASD), are complex neurological conditions that delay children’s development and
impair their ability to communicate and form relationships (“What is Autism?”). While all
Autistic children share some common symptoms, every child with Autism exhibits unique
behaviors and may require different treatments. Because Autism is a complex interaction of
environmental and biological factors, there is currently no known cure (“What is Autism?”).

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Families with Autistic children often have to experiment with different treatments and therapies,
educational interventions, diet changes, and medications to control symptoms. Insurance
companies cover few of these methods because there is no standard treatment. This means that
many families are saddled with high costs. According to the Center for Disease Control (CDC),
it costs an estimated $17,000 more per year to care for a child with ASD compared to a child
without the disability. For more severe disorders, costs increase to over $21,000 more per year
(“Data and Statistics”).
As more and more children are diagnosed with Autism, the cost becomes not only
individual, but also societal. Over the past ten years, prevalence of Autism in U.S. children
increased by 119.4 percent from 2000 (1 in 150) to 2010 (1 in 68) (“Data and Statistics”). It is
very likely that these children will require more federal funding and aid. Some may not be able
to support themselves. If nothing is done to address these issues, then our society will take on
significant financial costs. According to a study published in the Journal of the American
Medical Association, the annual costs, to American taxpayers, of supporting Autistic children
and adults are $61 billion and $175 billion respectively (“Costs of Autism Spectrum Disorders”).
These costs account for individuals’ accommodations (including the costs of staff employment),
direct medical costs, and individual productivity losses. If there was a way to support Autistic
individuals in getting jobs, securing shelter, and receiving medical care, it would reduce the costs
to society while allowing them to live a more enriching life.
While there are several services for young children with Autism, after the transition to
adulthood, many people find themselves stranded without support. A student with a disability
who is eligible for special education in the United States is guaranteed to receive services until
they leave high school or turn 21. After 21, the student may still be eligible for housing and job

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training services, but whether they receive those services depends on funding, which can vary
widely by state (“Coming of Age”). Depending on where they live, students may or may not be
able to receive funding. This leaves many individuals stranded with little economic support and
minimal job training opportunities. Unsurprisingly, this has resulted in a high rate of
unemployment. A couple of years out of high school, 66% of young adults with Autism have
never worked and have no plans to continue their education (“National Autism Indicators”). If
these individuals, and their families, were given alternatives ways to save for the future, they
might be able to pay for more services to give them the job skills they need. With guidance,
Autistic individuals can learn about possible employment opportunities and find ways to
contribute to society.
While there are many proposals to help increase funding for disabled individuals, these
solutions have a high cost to society. For example, one solution is for the state government to
require medical insurers to provide coverage for the treatment of Autism. As of December 1,
2015, 43 states and the District of Columbia have laws that require insurance coverage of Autism
services, but this has been met with a mixed reception (“Insurance Coverage for Autism”). Some
opponents to this approach argue that society should not have to bear the costs of Autistic
individuals. They advocate that it is the responsibility of parents and school systems to provide
services for these children. Others have argued that mandated coverage for Autism will
significantly increase insurance premiums for all citizens. According to the Council for
Affordable Health Insurance, an Autism mandate would increase the cost of health insurance by
about 1 percent. If the incidence of Autism continues to increase, at the rate it has previously, the
cost of insurance may increase anywhere from 1 to 3 percent (“Insurance Coverage for Autism”).
This unfairly places the burden on society to fund healthcare for disabled individuals.

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Even though the American taxpayers should not be held fiscally responsible for funding
families, other approaches may leave the family without any support. To illustrate this, another
proposed solution is for families to receive funding through the state Medicaid Waiver program
for disabled people. These waivers allow beneficiaries to receive funding that could help them
plan for their futures. The problem, however, with these programs is that the waivers are very
hard to obtain. According to the Pennsylvania Medicaid Services website, people can expect to
wait seven or more years before receiving services. Currently there are 14,647 people on the
Medicaid Waiver waiting list in Pennsylvania. Of those on the list, already 10,000 of them are
named as having an “Emergency Need” or “Critical Need” (“Pennsylvania Medicaid Waiver”).
This makes it very difficult for families to acquire the funds necessary to support their children.
There are also many qualifications a family has to meet before their child can receive a waiver.
Some families may not be able to qualify because their child does not meet all of the criteria.
While waivers do help a large number of people, there are limitations to the extent that they can
help families.
The ABLE Act solves many of these problems by providing a way for families to save
money for their children’s futures without taxing the general public. The ABLE Act is an
extension of the traditional college 529 qualified tuition program. The 529 plan was originally
created at the state level to help families afford college. Later, Section 529 of the Internal
Revenue Code authorized it at the federal level. The traditional 529 plan allows families to save
money for college in a tax-exempt account until their children require it (“An Introduction to 529
Plans”). Money from a college 529 plan can be used for study at any accredited college,
university, or vocational school in the United States and at some foreign universities. The ABLE
Act expands upon the original plan to extend the same benefits to disabled individuals. Before

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ABLE, individuals with disabilities could only have $2,000 in assets at any given time to be
eligible for many federal programs, but now they can save up to a certain amount (determined by
the state, but usually around $350,000) and still be eligible for Medicaid and other benefits
(“Achieving a Better Life Experience”). This gives parents, and disabled people themselves, a
place to save money that will not affect their ability to receive Medicaid, social security, or other
benefits they might need. The ABLE 529 account’s money can be used for education, housing,
transportation, employment support, healthcare, personal support, technology, and other
expenses (“Achieving a Better Life Experience”). By allowing disabled people to save their own
money, the ABLE Act empowers them to take responsibility for their future.
Based on the success of the traditional 529 plans, the ABLE Act should help its
beneficiaries save money for future expenses. According to an analysis of collegiate 529 plans
released by the Department of Treasury in 2009, tax benefits can increase the effectiveness of
saving by between 6 and 39 percent “depending on the tax bracket of the saver, the length of the
savings period, and whether there is a state deduction or credit for contributions” (“An
Analysis”). This allows families to take control of their finances and it lessens the burdens on
their students to take out loans. Also, like the educational 529 plan, the beneficiaries of the
ABLE account may also contribute to it if they are able to secure funds from jobs. This allows
the individuals who are able to work to contribute to their own lives and fund their own
treatments.
One of the criticisms of the current 529 plans and the new ABLE Act is that they will
only help people who are already wealthy. President Obama used this reasoning when he
proposed to tax 529 plans in his 2015 State of the Union Address (“529 Plans”). But, while most
families with 529 accounts tend to be middle class or higher, according to the Government

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Accountability Office, 70 percent of the accounts belong to households with less than $150,000
in income (“529 Plans”). As college costs continue to rise, a 529 educational plan can be a
valuable tool for everyone. Similarly, there are many families that may not be able to contribute
a substantial amount to a 529 plan under the ABLE Act. This may mean that they still do not
have access to important resources. The 529 ABLE Act cannot ensure that every individual gets
the services they need, but it can provide a way for them to invest in their own futures.
The ABLE Act will supply disabled people with a self-funded support system that can
enable them to become contributing members of society. Through use of their funds, people can
find the areas where they succeed and work to find their place in the world. The Declaration of
Independence claims that every individual has unalienable rights to “life, liberty, and the pursuit
of happiness.” Through the ABLE Act, disabled people can have increased financial stability,
freeing them to pursue their own dreams.

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Works Cited
"Achieving a Better Life Experience (ABLE) Act." National Down Syndrome Society. National
Down Syndrome Society, 17 Mar. 2016. Web. 05 Apr. 2016.
"An Analysis of Section 529 College Savings and Prepaid Tuition Plans." The Department of the
United States Treasury. The Department of the United States Treasury, 9 Sept. 2009.
Web. 5 Apr. 2016.
Buescher, Ariane, et al. V.S. Costs of Autism Spectrum Disorders in the United Kingdom and the
United States. Rep. Vol. 168. N.p.: Journal of the American Medical Association, 2014.
Journal of the American Medical Association Pediatrics. American Medical Association,
Aug. 2014. Web. 5 Apr. 2016.
"Data & Statistics." Centers for Disease Control and Prevention. Centers for Disease Control
and Prevention, 31 Mar. 2016. Web. 05 Apr. 2016.
Holland, Kelley. "529 Plans: The Real Users and What They Sock Away." CNBC.
NBCUniversal, 28 Jan. 2015. Web. 05 Apr. 2016.
"Insurance Coverage for Autism." National Conference of State Legislatures. National
Conference of State Legislatures, Dec. 2015. Web. 5 Apr. 2016.
"An Introduction to 529 Plans." SEC.gov. United States Securities and Exchange Commission, 6
Jan. 2014. Web. 05 Apr. 2016.
"Pennsylvania Medicaid Waiver." Pennsylvania Medicaid Waiver. Disability and Services
Waivers, 2016. Web. 05 Apr. 2016.
Roux, Anne M., Shattuck, Paul T., Rast, Jessica E., Rava, Julianna A., and Anderson, Kristy, A.
“National Autism Indicators Report: Transition into Young Adulthood.” Philadelphia,

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PA: Life Course Outcomes Research Program, A.J. Drexel Autism Institute, Drexel
University, 2015.
Sarris, Marina. "Coming of Age: Autism and the Transition to Adulthood." Interactive Autism
Network. Kennedy Krieger Institute, 8 Apr. 2014. Web. 4 Apr. 2016.
"What Is Autism?" Autism Speaks. Autism Speaks Inc., 2016. Web. 4 Apr. 2016.