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Louisiana Medicaid Eligibility Manual Eligibility Factors

Issued January 7, 2026 Page 8 of I-1550 Replacing November 13, 2025

Revised/added text indicated by underscore Deleted text indicated by “**” I-1553 MAGI-RELATED TYPES OF INCOME

Consider the following types of taxable income in MAGI budgeting:

 ALIMONY Count as unearned income, only those payments ordered by a judgment dated prior to January 1, 2019 made directly to the household from non-household members. Do not count payments ordered by a judgement dated on or after January 1, 2019.

 ALIEN SPONSOR'S INCOME Count as unearned income.

 ANNUITY INCOME Count as unearned income any taxable portion of annuity income.

 BUSINESS INCOME (OR LOSS) Count net profit or loss from partnerships, corporations, etc. as earned income.

 CAPITAL GAIN (OR LOSS) Allow for a capital gain or loss when budgeting.

 CONTRACTUAL INCOME Count as earned income. Annual income received under an implied, verbal, or written contract in less than twelve (12) months shall be averaged over the twelve (12) month period it is intended to cover unless the income is received on an hourly or piecework basis.

Example: Income received by teachers, teacher's aides, and school bus drivers.

 DISABILITY INSURANCE BENEFITS Count as unearned income.

Exception:

Count as earned income if federal and/or state taxes are being deducted.

 DIVIDENDS Count as unearned income. Income from dividends should be averaged over the period they are intended to cover.