Page 12

Louisiana Medicaid Eligibility Manual Eligibility Factors

Issued January 7, 2026 Page 12 of I-1550 Replacing November 13, 2025

Revised/added text indicated by underscore Deleted text indicated by “**” counted as earned income, the applicant/beneficiary must perform some work-related activity. If the applicant/beneficiary does not perform work-related activity, the money received is unearned income. Deduct only allowable expenses associated with producing the income. If the income is earned, also allow other earned income deductions. See also Self-Employment Income.

 RETIREMENT Count the gross amount of retirement benefits as unearned income, including military retirements.

Note: The CARES Act of 2020 allows qualified individuals distribution options and rollover rules for up to $100,000 of coronavirus-related distributions from eligible retirement plans. Count this income monthly over the time period of the IRS-approved option chosen by the individual.

 ROYALTIES Count as unearned income. Prorate royalties for the period they are intended to cover.

 SCHOLARSHIPS, AWARDS, OR FELLOWSHIP GRANTS Count as unearned income if used for living expenses, such as room and board and not for education purposes.

Count as unearned income any academic scholarships, awards, or fellowship grants that are used for room and board, travel, research, clerical help or equipment and are not required for enrollment at the educational institution.

Count as unearned income the part of any scholarship or fellowship grant that represents payment for teaching, research or other services required as a condition for receiving the scholarship.

Exception: Do not count income received under the National Health Service Corps Scholarship (NHSCS) program or the Armed Forces Health Professionals Scholarship and Financial Assistance Program (AFHPSFAP).

 SEASONAL EARNINGS Count as earned income in the month received.