Page 23

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 23 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**” waiver services for 30 consecutive days]) burial fund exclusion is reduced by the following:

• The face value of burial insurance which has no cash surrender value. Refer to Life Insurance.

• The full face of any life insurance policies which were disregarded as resources because the total face value was $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]) or less and any accumulated dividends. Refer to Life Insurance.

• The value of a prepaid burial contract excluding the value of burial spaces if their value can be identified in the contract. Any unidentified portion of a contract that implies it covers burial space items but does not identify them is considered burial funds. Refer to Burial Contracts.

A subsequent purchase of a disregarded life insurance policy or an irrevocable burial contract reduces the amount of exclusion effective the month after the month in which the life insurance or the irrevocable burial contract was purchased.

Determine the excludability of funds set aside for burial. In order to be excluded, the funds must be:

• Kept separate from non-burial related resources,

• Separately identifiable for each spouse, and

• Designated for burial.

Written verification that the resource is separately held and not co- mingled with non-burial assets is required.

Funds which are not co-mingled can be designated for burial by a written statement signed by the applicant/beneficiary and/or their spouse.

The statement shall contain:

• The specific resource which is designated for burial (e.g.,