Page 16

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued October 21, 2025 Page 16 of I-1670 Replacing January 27, 2025 Revised/added text indicated by underscore Deleted text indicated by “**”

If the State is not named as a remainder beneficiary in the correct position, the purchase of the annuity will be considered a transfer for less than fair market value if it was obtained within the 60 month lookback period. The full purchase value of the annuity will be considered the amount transferred. If the annuity was purchased outside of the lookback period, the full Fair Market Value should be counted as a resource.

For any annuity disclosed, Medicaid must also notify the issuer of the State’s right as a preferred remainder beneficiary.

Medicaid may also require the issuer to notify it regarding any changes in disbursement of income or principal from the annuity.

The issuer of an annuity may disclose information about the State’s position as remainder beneficiary to others who have a remainder interest in the annuity.

When an unreported annuity is discovered after eligibility has been established and after payment for long-term care services has been made, verification of the unreported annuity shall be requested.

Refusal to disclose sufficient information related to any annuity will result in denial or termination of Medicaid entirely, based on the applicant’s failure to cooperate in accordance with existing Medicaid policies.

Appropriate steps to terminate payment for long term care services will be taken, including appropriate notice to the individual of the adverse action.

In addition to purchases of annuities, certain related transactions which occur to annuities on or after February 8, 2006 make an annuity, including one purchased before that date, subject to the all of the annuity provisions that went into effect on February 8, 2006.

Any action taken on or after February 8, 2006 by the individual that changes the course of payment to be made by the annuity or the treatment of the income or principal of the annuity, including:

• Additions of principal,

• Elective withdrawals,