Page 19

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 19 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**”

Series E, EE and I bonds accrue interest which is added to the redemption value of the bonds. Owners do not receive interest payments.

Series H and HH are only issued as paper bonds. They are issued at their face value and do not increase in value. Interest is paid to the owner every six months. Do not count the interest as income in the month of receipt. The cash value is the bond’s face value and is obtained from the bond itself.

 Bond for Deed

A Bond for Deed is a contract for the sale of property in which the transfer of ownership is delayed until the property is paid for in full or paid down to an agreed upon level. The seller no longer has legal rights to sell the property or convert it to cash, therefore, it is no longer available to them and NOT a countable resource. A Bond for Deed contract may be cancelled if the buyer fails to make the scheduled payments. If the Bond for Deed is cancelled, the property becomes a countable resource to the seller.

Count interest and principal portion of payments received on a Bond for Deed as unearned income in month of receipt.

 Burial Contracts

A burial contract is a resource if it is revocable or salable, and conditions for its liquidations do not present a significant hardship.

However –

• Any portion of the contract that clearly represents the purchase of burial space, may be excludable, and

• Some or all of the remaining value may be excludable as burial funds.

A burial contract is not a resource if it cannot be revoked and cannot be sold without significant hardship.

Note: