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Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued October 21, 2025 Page 14 of I-1670 Replacing January 27, 2025 Revised/added text indicated by underscore Deleted text indicated by “**” Established After August 11, 1993). An annuity is defined as a contract or agreement by which one receives fixed non-variable payments on an investment for a lifetime or a specified number of years.

Treatment of Annuities created January 1, 2003 thru February 7, 2006

An annuity containing a balloon payment will be considered an available resource. An annuity purchased by or for an individual using that individual’s assets will be considered an available resource unless all of the following criteria are met. The annuity:

1. Is irrevocable;

2. Pays out principal and interest in equal monthly installments (no balloon payment) to the individual in sufficient amounts that the principal is paid out within the actuarial life expectancy of the institutionalized individual;

Names the State of Louisiana, Louisiana Department of Health, or its successor agency as the primary and permanent residual beneficiary of funds remaining in the annuity, not to exceed any Medicaid funds expended on the individual during his/her lifetime; and

3. Is issued by an insurer or other body licensed and approved to do business in the jurisdiction in which the annuity is established.

Annuities which do not meet all of the above criteria must be amended to comply with these requirements. Annuities which do not provide for pay out of principal and interest in equal monthly installments, and for which documentation is received from the issuing company that the “pay out” arrangements cannot be changed, will be considered to meet the new requirements once amended to name the State of Louisiana, Louisiana Department of Health, or its successor agency as the primary and permanent residual beneficiary of funds remaining in the annuity, not to exceed any Medicaid funds expended on the individual during his/her lifetime.

Note: The Louisiana Department of Insurance web site can be used to determine if a company is licensed and approved to do business in LA. The site is www.ldi.state.la.us.