Special Needs Trust Fairness Act​

The Special Needs Trust Fairness Act (S. 349) was introduced by Sen. Chuck Grassley (R-Iowa) with Sen. Bill Nelson (D-Fla.) as original co-sponsor. The full Senate passed the bill on September 9, 2015. A similar bill, the Special Needs Trust Fairness and Medicaid Improvement Act (H.R. 670), was introduced by Rep. Glenn Thompson (R-Penn.) with Rep. Frank Pallone (D-N.J.) as original co-sponsor and passed the House of Representatives on September 20, 2016. Ultimately, the Senate version was enacted as part of the 21st Century Cures Act, signed by President Obama.

The Special Needs Trust Fairness Act amends Title XIX of the Social Security Act to allow individuals with disabilities to establish their own special needs trusts. Formerly such trusts could only be established by parents, grandparents, legal guardians, or a court.

Special needs trusts allow non-elderly individuals with disabilities to receive and accumulate assets without jeopardizing eligibility for government programs, such as Supplemental Security Income (SSI), Medicaid, and vocational rehabilitation. The trust is specifically designated for “supplemental and extra care” beyond that which the government provides. When the beneficiary dies, the state may file a “Medicaid Pay-Back” claim against the trust to recoup health care costs paid on his or her behalf.

Related Public Policies

Social Security Disability Insurance (Title II of Social Security Act)​

Social Security Disability Insurance (SSDI) is a federal program that provides cash payments to individuals who are under age 65.

Supplemental Security Income (Title XVI of the Social Security Act)​

Supplemental Security Income (SSI) is a federal program that provides cash payments to individuals who are elderly, blind, or disabled.

Achieving a Better Life Experience (ABLE) Act ​

The Achieving a Better Life Experience (ABLE) Act allows individuals with disabilities to establish tax-advantaged savings accounts.

Improving Medicare Post–Acute Care Transformation Act (IMPACT Act)​

The Improving Medicare Post–Acute Care Transformation Act (IMPACT Act) authorized the creation of a standardized platform to measure quality and.

Patient Protection and Affordable Care Act​

The Patient Protection and Affordable Care Act reformed America's health care by increasing the number of insured people, eliminating discriminatory.

Ticket to Work and Work Incentives Improvement Act​

The Ticket to Work and Work Incentives Improvement Act protects the health care and other benefits of individuals with disabilities.

Olmstead Decision​

The Supreme Court decision affirming the right of individuals with disabilities to live in the most integrated, community-based setting possible.

Americans with Disabilities Act​

The Americans with Disabilities Act prohibits discrimination of individuals with disabilities in employment, public services, public accommodations, and telecommunications.

Medicaid (Title XIX of the Social Security Act)​

Medicaid is a joint state-federal program that provides health care to individuals who have low incomes, including persons with disabilities.

Medicare (Title XVIII of the Social Security Act)​

Medicare is the federal health insurance program for individuals age 65 and older and for those who qualify based on.