Page 10

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 10 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**” Do not count income received in a month and deposited in a bank account in determining resource eligibility for that month.

An encumbrance is defined as a legal obligation to pay a debt. An encumbrance may exist when a check has been written from a bank account, and it has not cleared by the first moment of the first day of the month in which eligibility is considered. To establish the equity value of a bank account, an encumbrance may be deducted from the bank account balance.

When the applicant/beneficiary and/or the authorized representative allege that a check was written that legally obligated funds in an account, determine that:

• The check was written prior to the month for which eligibility is considered (copy of check and/or check registry),

• The amount of the check was deducted from the bank account the month which eligibility is considered, and

• The check was not written with the purpose to reduce resources in order to qualify for Medicaid (establish historical patterns).

Example: The applicant’s bank statement shows an account balance of $2,050 as of May 1. The applicant alleges the statement balance includes a rent check of $500 which was written and given to the landlord on April 25, but the landlord has not yet cashed the check.

Review of the applicant’s bank statement shows a $500 check was written on April 25, and the check cleared the bank and has been deducted from the applicant’s account. Further review of the applicant’s bank statements shows a history s/he has written a $500 check to their landlord for rent on the 25th of each month for the last six months.

Since there is evidence that the applicant has written the check and has legally obligated those funds in the account, and their records provide a complete and consistent picture of the account, deduct the $500 check from the May 1 account balance of $2,050 as of May 1. The new balance of $1,550 is considered in determining resource eligibility.

Count direct deposits made at the end of a month for the following