Page 2

Louisiana Medicaid Eligibility Manual

Eligibility Factors Issued March 31, 2026

Page 2 of I-1400 Replacing October 16, 2025 Revised/added text indicated by underscore

Deleted text indicated by “” I-1416 OTHER PROHIBITED PROVISIONS I-1416.1 Treatment of payments made under the Susan Walker v. Bayer Corporation et al. settlement and the Ricky Ray Hemophilia Relief Fund Act of 1998 (Referred to collectively as Blood Products Litigation, or BPL)

Section 4735 of the Balanced Budget Act of 1997 (Public Law 105-33) and the Ricky Ray Act of 1998 (Public Law 105-369) provided for the continuation of Medicaid eligibility for individuals receiving payments under the Susan Walker v. Bayer Corporation et al. settlement or the Ricky Ray Act relief fund.

Payments made to individuals under the settlement or relief fund are not counted as income or resources in determining either eligibility for, or the amount of, benefits under the Medicaid Program, notwithstanding any other provisions of law.

Important: Income derived from these settlement payments is not exempt.

If any payments are placed in interest-bearing accounts or some other investment medium, the income generated will be counted as unearned income.

If the payments are used to purchase an item that would not normally be excluded as a resource, the value of that item may be counted as a resource in determining eligibility.

Do not assess a transfer of resources penalty if the individual transfers the settlement or relief funds for less than fair market value. Do not count settlement or relief funds placed in a trust.

I-1420 NEED - DEEMING

Deeming is the process of considering income and resources of another individual or individuals to be available for meeting an applicant/beneficiary’s basic needs of food, clothing, and shelter whether or not the income and resources are actually made available.

Deeming of income and resources is appropriate in the following non-MAGI-related programs: • Qualified Medicare Beneficiary (QMB);