Page 17

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued August 11, 2025

Page 17 of I-1530 Replacing February 17, 2025

Deleted text indicated by “” Revised/added text indicated by underscore

Example: When an individual has contracted to purchase an automobile or a home and his/her son is making the payments on their behalf, the payment is not considered in-kind income.

Refer to In-Kind Support and Maintenance when there is any question whether a third party payment is in-kind income or in-kind support and maintenance.

The value of in-kind income is determined by the fair market value at the time of receipt.

IN-KIND SUPPORT AND MAINTENANCE (ISM)

In-kind Support and Maintenance (ISM) are third party payments that result directly in an individual's fulfillment of a basic need for only shelter expenses (Rent, mortgage payments, and utility expenses).

Apply when the applicant/beneficiary lives throughout a month in another person’s household and receives shelter from others living in the same household or when someone outside the home pays for the individual’s shelter costs.

Count as unearned income up to the Presumed Maximum Value.

Exception: Do not count ISM in determining eligibility for Act-421 CMO, MNP, MPP, QMB, SLMB, QI, and TB individuals.

Presumed Maximum Value

When determining the value of in-kind support and maintenance, presume that the value is not more than an amount equal to one- third of the appropriate SSI standard payment plus $20. Refer to MEM Z-400.

The individual should be advised of their right to rebut the presumed maximum value and establish actual value. The amount of in-kind support and maintenance to be counted is the lesser of:

• The presumed maximum value, or

• The established actual value.