NE LB1240

Amends section 77-1403 to prohibit Nebraska from seeking recovery of amounts remaining in or distributed from an ABLE (Achieving a Better Life Experience) account upon the death of a designated beneficiary for medical assistance received under the Medical Assistance Act

Prohibits the state from filing claims for payment under section 529A(f) of the Internal Revenue Code against deceased beneficiaries' ABLE accounts

Recovery prohibition takes effect only after the Department of Health and Human Services receives approval from the federal Centers for Medicare and Medicaid Services

Protects ABLE account funds from Medicaid estate recovery for medical assistance provided to the beneficiary, their spouse, or dependents after the account was established

Introduced by Senators Murman, Clements, Holdcroft, Lippincott, and Lonowski; first read January 21, 2026