Page 20
Louisiana Medicaid Eligibility Manual Eligibility Factors
Reissued June 9, 2026
Page 20 of I-1630 Replacing September 23, 2024
Revised/added text indicated by underscore
Deleted text indicated by “**” The $1,500 ($10,000 for Non-MAGI Related Medically Needy program, MPP and the special income level group [LTC, individual in a medical institution for at least 30 days or receiving waiver services for 30 consecutive days]) burial fund exclusion is reduced by the value of the irrevocable contract.
Significant hardship means an unrealistic demand on the buyer, e.g., having to move out of state. If conditions creating hardship are not evident on the face of the contract, count the contract as a resource unless the applicant/beneficiary provides evidence to the contrary.
Use the value of the amount payable upon revocation or use its current market value if the contract is not revocable but is salable as the countable resource value.
A life insurance funded burial contract involves an individual purchasing a life insurance policy on their own life and then assigning, revocably or irrevocably, either the proceeds or ownership of the policy to a third party, generally a funeral provider to fund the contract. The value of the burial arrangement is the value of the life insurance policy.
Example #1: Mrs. Jones files an application for LTC. Her resources consist of two life insurance policies with a total face value of $14,500 and CSV of $2,850 and an irrevocable burial contract of $12,000. Since the total face value exceeds $10,000, count the CSV of the policies. Since the maximum excludable amount of funds for burial is met by the irrevocable burial contract, no further burial exclusion is allowable and Mrs. Jones is ineligible for medical assistance because her countable resources of $2,850 are above the allowable limit.
Example #2: Mr. White is a resident of a Medicaid facility. He applies for Medicaid. His resources consist of two life insurance policies with a total face value of $1,000 and a savings account with a balance of $10,000, which he intends to use for burial. The face value of the life insurance policies meets $1,000 of the $10,000 allowable exclusion. The additional $9,000 that may be excluded for burial reduces the savings account balance to $1,000 ($10,000 - 9,000). This is within the resource limit. Mr. White is eligible because the entire fund is designated for burial.
Example #3: