Page 21

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued August 11, 2025

Page 21 of I-1530 Replacing February 17, 2025

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

• This is not an in-kind payment,

• For which a valid loan agreement exists, and

• In which:

– one party advances money or services to another party,

– the other party (borrower) at the time of the loan or the beginning of the services promises to repay the debt in full within a specified period of time which must be within his /her lifetime, and

– neither party to the agreement is a minor or has been declared legally incompetent.

A valid loan agreement can be written or oral. Oral loans that meet the above criteria are legally binding under Louisiana law.

A written loan agreement must meet the following conditions:

• The borrower's acknowledgment of an obligation to repay (with or without interest),

• A timetable for repayment, and

• A realistic plan for repayment (e.g., borrower plans to repay the loan when he receives anticipated income).

Verification of an oral agreement must include:

• Signed statements from both parties giving a description of the loan agreement. Compare the statements to see if they have agreed as to:

– the amount of the loan,

– the timetable for repayment, and

– the amount of the payments.

• The signed statement of the borrower acknowledging their current intent to comply with the loan agreement described above.