Page 11

Louisiana Medicaid Eligibility Manual Eligibility Factors

Issued January 7, 2026 Page 11 of I-1550 Replacing November 13, 2025

Revised/added text indicated by underscore Deleted text indicated by “**” If a request for an undue hardship exception is denied, the applicant is notified of the decision in writing. The applicant has the right to appeal the denial decision.

 OIL AND LAND LEASES Count as unearned income. Prorate regular recurring income from leases over the period it is intended to cover and count as unearned income.

Payments received in the first year of an oil lease, which are above the regular recurring rental and payments received when an oil lease is written for a single year, are treated as non-recurring lump sum payments.

 PENSIONS Count as unearned income.

 POTENTIAL INCOME Count income that is potentially available when the applicant/beneficiary has a legal interest in a liquidated sum and has the legal ability to make this sum available for the support and maintenance of the MAGI household.

Count income that is available but the applicant/beneficiary chooses not to receive it. Note: If the agency representative is unable to determine the amount of benefits available because of the applicant/beneficiary’s inability or refusal to cooperate, reject the case for failure to cooperate. Refer to G-1100 Cooperation.

 RAILROAD RETIREMENT Count the amount of the entitlement as unearned income. Note: Include the amounts deducted from the check for the Medicare premiums, less any amount being recouped for a prior overpayment.

 RENTAL PROPERTY INCOME Ownership of rental property is considered a self-employment enterprise. Count profit after allowable deductions. Income received from rental property may be earned or unearned. To be