Page 20
Louisiana Medicaid Eligibility Manual Eligibility Factors
Reissued August 11, 2025
Page 20 of I-1530 Replacing February 17, 2025
Deleted text indicated by “” Revised/added text indicated by underscore
JOB TRAINING PARTNERSHIP ACT (JTPA)
Count earnings from JTPA as earned income.
LEASE ARRANGEMENTS FOR MINERAL AND SURFACE RIGHTS
Count as unearned income in the month of receipt.
Lease arrangements include gas, oil, timber, gravel, and land use leases.
Note: Use net income when the difference between gross and net in oil royalties is for payment of severance tax.
LIFE INSURANCE
Count money received by the beneficiary at the death of the insured.
Exception: For spouses and parents of the deceased, the expenses of last illness and burial are deducted from the lump sum.
Do not count money received from cashing in a life insurance policy as it is considered conversion of a resource.
Count accelerated life insurance payments made for certain ill policy holders as income in the month of receipt. The receipt of accelerated payments is not treated as a conversion of a resource because the policy holder is receiving the proceeds from the policy and not the policy's cash surrender value.
Do not count as potential income if accelerated payments are available to an applicant/beneficiary and he chooses not to apply for them.
LOANS
Do not count income received as the result of valid loan agreements.
A loan is a transaction: