Page 8

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 8 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**”

Treatment of Annuities in Determining Eligibility

The following types of annuities are not treated as a transfer of assets if the annuity meets the following conditions (these conditions do not apply to an annuity owned or purchased by the community spouse):

a) The annuity is considered either :

(1) An individual retirement annuity (according to Section 408(b) of the Internal Revenue Code of 1986 (IRC)), or

(2) A deemed Individual Retirement Account (IRA) under a qualified employer plan (according to Section 408(q) of the (IRC)); or

b) The annuity is purchased with proceeds from one of the following:

(1) A traditional IRA (IRC Sec. 408a); or

(2) Certain accounts or trusts which are treated as IRAs (IRC Section 408 §(c)); or

(3) A simplified retirement account (IRC Sec. 408 §(p)); or

(4) A simplified employee pension (IRC Sec. 408 §(k)); or

c) The annuity meets all of the following requirements:

(1) The annuity is irrevocable and non-assignable; and

(2) The annuity is actuarially sound; and

(3) The annuity provides payments in approximately equal amounts, with no deferred or balloon payments.

Applicants or their responsible or authorized representative will be responsible for providing documentation from the financial institution for verifying qualifying IRS annuities. Absent such documentation, the purchase of the annuity will be considered a transfer for less than fair market value which is subject to penalty. The full purchase value of the annuity will be considered the