Page 25

Louisiana Medicaid Eligibility Manual Eligibility Determinations

Reissued January 6, 2026 Page 25 of H-800 Replacing August 11, 2025 Revised/added text indicated by underscore Deleted text indicated by “**” at risk of serious deprivation as described above.

Undue hardship does not exist in the following instances:

1. When transfers are made to the following persons:

● Blood relatives to a third degree cousin;

● Mother-in-law;

● Father-in-law;

● Brother-in-law; or

● Sister-in-law.

2. Undue hardship does not exist if the individual who transferred the assets, or on whose behalf the assets were transferred, has not exhausted all lawful means to recover the assets or the value of the transferred assets.

3. Undue hardship does not exist if the applicant/beneficiary’s health or age indicated a need for LTC services was predictable at the time of the transfer. H-870 UNDUE HARDSHIP EXCEPTION

An undue hardship exception is the dismissal of the penalty, either in whole or in part, which otherwise would have been imposed against an applicant/beneficiary after finding that an undue hardship exists.

H-870.1 Request for Undue Hardship Exception

Prior to imposition of a penalty the applicant/beneficiary must be sent a notice (Notice of the Right to Apply for a Hardship, BHSF Form 2- Hardship) that explains the penalty, their right to apply for an exception and how to apply for the exception. The notice must clearly state:

 That the request for consideration of the exception must be postmarked within seven (7) business days following receipt of the notice;

 That documentation supporting the request for the exception must be provided; and

 The address for the Medicaid office to which the request must be sent.

The Department of Health (LDH) may extend the request period if it