Page 9

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 9 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**” amount transferred.

Even if the purchase of an annuity is not treated as a transfer, if the annuity or income stream from the annuity is transferred, it may be subject to a penalty except when transferred;

• To or for the spouse’s sole benefit,

• To their child who is under age 21 or blind or disabled,

• Or to a trust established solely for the benefit of an individual under 65 years of age who is disabled,

Consideration of Income and Resources from an Annuity

Even when an annuity is not penalized as a transfer of resources, it must still be considered in determining eligibility, including spousal income and resources, and in the post eligibility calculation.

Count Income or resources derived from an annuity in determining eligibility.

The state is required to notify the issuer of any annuity disclosed under these provisions of the state’s rights as a preferred beneficiary. The state may require the issuer to notify it regarding any changes in disbursement of income or principal from the annuity.

 Bank Accounts

Count the balance shown by the bank for the first moment of the first day of each month for which eligibility is considered.

Advise the applicant/beneficiary and/or the authorized representative:

• Of their responsibility to furnish information on all bank accounts, and

• That a computer match to the IRS 1099 file will be done.

Investigate all accounts declared by the applicant/*beneficiary/ authorized representative or reported by any other source.