Page 22

Louisiana Medicaid Eligibility Manual Eligibility Factors

Issued January 7, 2026 Page 22 of I-1550 Replacing November 13, 2025

Revised/added text indicated by underscore Deleted text indicated by “**” Medicaid determination. Different methodologies are used for the different types of deductions in order to determing monthly MAGI-based income. The different types of deductions are consistent monthly, lump sum and annualized deductions. Consistent Monthly Deductions The monthly expense is deducted from the current monthly income.

Lump Sum Deductions Divide the total lump sum expense by 12 and deduct one twelfth from current monthly income.

Annualized Deductions Divide the total expense by 12 and deduct one twelfth from current monthly income.

**

I-1554.6 Methods to Budgeting Deductions

DEDUCTION TYPE METHODOLOGY Alimony payments ordered by a judgment dated prior to January 1, 2019. Consistent Monthly Deduction Deduct Monthly Certain business expenses of reservists, performing artists and fee basis government offices. Annualized Deduction Deduct 1/12 Monthly Deductible part of self-employment tax Annualized Deduction Deduct 1/12 Monthly Domestic production activities deductions Annualized Deduction Deduct 1/12 Monthly Educator expenses Lump Sum Deduction Deduct 1/12 Monthly Health savings account deduction (employee owned) Annualized Deduction Deduct 1/12 Monthly Hobby income expenses, or expenses from an activity from Annualized Deduction Deduct 1/12 Monthly