Page 59

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 59 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**” the property at each renewal for three years after the date of the auction.

$6,000/6% Rule

If property not excluded as trade or business property produces income at an annual net rate of return of 6% or more of the equity value, up to $6,000 of the equity value may be excluded.

Determine the number of separate pieces of property. Property is separate if it is not contiguous, that is, separated by property owned by others at all points.

Exception: Property separated by a public road or right of way is still contiguous.

Apply the following to each separate piece of income producing property:

• Determine the equity value.

• Determine the annual net income (gross income less allowable deductions).

• Determine the annual net rate of return:

Annual net income ÷ Equity value = Annual net rate of return

If the annual net rate of return is at least 6% of the equity value:

• Exclude up to $6,000, and

• Count the amount over $6,000 towards the resource limit.

If the annual net rate of return is less than 6% of the equity value, count the full equity value.

Exception: Less than 6% annual return may be used to exclude the