Last-Minute Ohio Budget Provision Targets Medicaid Eligibility for People with Disabilities

Hidden in Ohio’s new 2025-2027 state budget is a provision that could have serious consequences for thousands of Ohioans with disabilities. The final budget, recently signed by Governor DeWine, requires a sweeping audit of people on Medicaid under what’s called the “Aged, Blind, and Disabled” (ABD) eligibility group. Many people with developmental disabilities on Medicaid waivers fall into this category.

This provision was not part of the original House or Senate budget bills. It was inserted by the conference committee at the last minute, leaving families, disability advocates, and the general public with no opportunity to testify or weigh in before it became law.

What the law says:

Section 751.170 of the new budget law requires:

• The State Auditor to conduct an audit of Medicaid recipients in the ABD group, specifically to see if they have more countable assets than allowed under federal law (generally, more than $2,000 in their own name).

• The Department of Medicaid to create a corrective action plan after the audit, including:

• Addressing individuals found to be over the asset limit (which could mean loss of coverage for anyone with $2,001 or more).

• Establishing an electronic asset verification system to automatically check the finances of disabled, aged, and blind applicants and people already on Medicaid.

• Finding other ways to reduce Medicaid spending on disabled, aged, and blind Ohioans, even if they qualify for services.

The law also says this plan must be submitted to Ohio lawmakers for review.

What this means for families

If your loved one is a minor child on a Medicaid waiver, there’s most likely no problem. For minors, Ohio Medicaid does not count the parents’ assets, only assets that are in the child’s name. So as long as your child doesn’t have more than $2,000 personally, they’re safe. Check with your estate planning professional once in a while to make sure your estate plan and those of relatives (grandparents, etc.) are set up correctly.

For adults who have Medicaid due to disability, age, or blindness, including those on DODD waivers, this does matter. If they have even $1 over the $2,000 limit (like bank accounts in their own name, matured UTMA/UGMA accounts, inheritances, or settlements from lawsuits), they could be flagged as ineligible.

This is especially concerning because the new law also directs the state to set up automatic asset checks, which means a new computer system could catch any accidental overages (for example, a person with an intellectual disability who briefly has $2,005 in their bank account due to making a math error) and take away their Medicaid.

What families should do now

• Check assets: Make sure your loved one does not have more than $2,000 in their own name across all accounts.

• Consider options like Special Needs Trusts or ABLE accounts, which don’t count against Medicaid limits.

• Watch for letters: If this audit triggers notices from Medicaid, respond immediately and consider contacting a benefits attorney.

Why we’re sounding the alarm

This new law to create an electronic asset monitoring system and look for mysterious “other initiatives” to lower spending on Medicaid for people with disabilities was quietly slipped into the final budget bill by the conference committee after all the hearings were already over, meaning people with disabilities never had a chance to speak up or even learn what was happening.

That’s why we’re talking about it now: to help keep Ohio families aware of the rules.

Consider sharing this article so more families can double check their situations now and make sure they are following the rules correctly.