Page 21

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 21 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**” Mrs. Green applies for Extended Medicaid. Her countable resources consist of three whole life insurance policies with a total face value of $2,500 and total CSV of $1,950 and a checking account with a balance of $525. Mrs. Green designates the countable CSV of her life insurance policy for her burial. The total CSV of $1,950 minus the limit of $1,500 for burial leaves $450 in non-excluded CSV of life insurance policies. Mrs. Green's countable resources have a total value of $975, $450 plus $525 (checking account). This is within the resource limit, and Mrs. Green is eligible.

Irrevocable Arrangements

A pre-need funeral contract may be excluded as a countable resource if it is an irrevocable contract and includes an itemized list of services with a total value equal to the pre-paid amount.

A burial fund contract funded by life insurance may be excluded as a countable resource if:

• The ownership of the life insurance is irrevocably assigned to a funeral home; or

• The owner has signed an amendment irrevocably waiving their rights under the policy to surrender the policy for cash, to obtain a loan against the policy or to change the ownership.

Obtain a copy of any irrevocable burial contracts, trusts, or arrangements.

Irrevocable arrangements including placing funds in a burial trust are considered a purchase and not a transfer regardless of the date of the transaction.

 Burial Funds

Funds set aside for the burial expenses of the applicant/beneficiary and/or their spouse may be excluded if certain criteria regarding use and total value of the burial funds are met.

Burial funds are: