Page 39

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 39 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**”

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

If the criteria is not met treat the promissory note or mortgage as a transfer of resources for less than fair market value.

Value

Consider the value of the outstanding principal balance as the countable resource. Also the portion of the payment received which represents repayment of the principal is counted as a resource, and must be excluded as income because it is conversion of a resource from one form to another.

Verification

Copy the mortgage or promissory note. **

 Mutual Fund Shares

A mutual fund is a pool of shared investment assets managed by a fund manager. The manager is authorized to buy and sell securities and other property for the purpose of producing earnings and increasing the value of the assets. For this service, the mutual fund is allowed to charge the investor for the purchase, exchange, and liquidation of shares in the mutual fund. In return for this investment, the owner of a mutual fund shares in the earnings/losses of the fund in proportion to the number of shares owned.

Count the equity value of mutual fund shares. The value of mutual fund shares is expressed on a "bid" and "asked" or "buy" and "sell" basis. To determine the value of a mutual fund share, use the closing price (bid or buy) on the last business day of the month prior to application or renewal.

 Now Accounts

Refer to Bank Accounts.

 Over the Counter Cards (OTC)