Page 34

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 34 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**” policies on herself with the following values: • $400 FV with $700 CSV, • $500 FV with $1000 CSV, and • $200 FV with $400 CSV

The total FV of her policies is $1100 ($400 + $500 + $200 = $1100) and the total CSV of the policies is $2100 ($700 + $1000 + $400 = $2100). Even though the total CSV is more than the resource limit of $2000, the life insurance policies are entirely disregarded because they are for the same insured person and the total FV is less than $1500 ($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]). Owner has policies on herself and others Mrs. Lambert, from above, also owns three additional life insurance policies on other insured people. In this case, calculate the total FV for each insured individual. If the total FV of the policies on each insured individual is less than $1500 ($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]), those policies are disregarded.

Transfer of a disregarded life insurance policy for less than FMV may result in a penalty period. Refer to MEM I-1670 Transfer of Assets for Less Than Fair Market Value

If counting the CSV results in ineligibility, the CSV may be excluded if the life insurance policy, subject to the $1,500 burial fund limit ($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]), is intended for the applicant/beneficiaries burial.

The CSV of an insurance policy can only be designated for the burial of the named insured. Refer to Burial Funds.

Note: Do not include the face value of dividend additions in determining whether a policy is a countable or excludable