Page 24

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 24 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**” countable life insurance CSV, burial contract, bank account),

• The amount of funds set aside for burial,

• For whose burial the funds are set aside,

• The date the funds were set aside, and

• The individual's acknowledgement that any money withdrawn from funds set aside for burial will be counted as income in the month of withdrawal.

Separately held funeral funds may be excluded to the later of the following dates:

• The first day of the month following the month in which funds are separately held and not commingled,

• November 1, 1982, or

• Month of application.

Exclude from resources (and from income) any increase in the value of excluded funds because of accumulated interest or appreciation of the funds. This includes interest earned by burial funds, provided the interest is left to accumulate as part of the funds.

Once a fund is designated for burial purposes, it remains a burial fund until:

• Eligibility terminates,

• Part or all of the fund can no longer be excluded as a burial fund because the individual purchased excluded life insurance or an irrevocable burial contract which partially or totally offsets the available burial fund exclusion, or,

• The individual uses the funds for another purpose.

Note: Transferring excluded burial funds from one form of burial exclusion to another is not considered "use for another purpose".

If excluded burial funds are used at any time for a purpose other than