Page 36

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 36 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**”

When the applicant/beneficiary is the lender, count the outstanding principal balance as a resource. The loan must meet the following criteria:

• The repayment term must be actuarially sound;

• Payments must be made in equal amounts and no balloon payments; and

• The loan must prohibit the cancellation of the balance upon the death of the lender.

If the criteria is not met treat the loan as a transfer of resources for less than fair market value.

Refer to Mortgages and Promissory Notes.

Refer to I-1534 Types of Income (SSI-Related), Loans

 Lump Sum Payments

Lump sum payments are non-recurring cash payments countable as income in the month of receipt and as a resource beginning the month after receipt. Refer to I-1534 Types of Income (SSI-Related), Lump Sum Payments.

Exclude from countable resources any cash paid to a beneficiary that is intended to cover medical or social service expenses for one full calendar month after the month of receipt (for example, a Medicare payment for an outstanding debt). Cash that reimburses the beneficiary for medical or social service expenses the beneficiary has already paid is countable as a resource. Any funds remaining at the beginning of the second month after the month of receipt must be counted as a resource at that time.

Count interest paid on the unspent portion of a lump sum payment that is a non-excludable resource as unearned income in the month of receipt, and as a resource the following month.

SSI and RSDI Retroactive Payments

Exclude SSI and RSDI retroactive lump sum payments for the nine