Page 19

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued October 21, 2025 Page 19 of I-1670 Replacing January 27, 2025 Revised/added text indicated by underscore Deleted text indicated by “**”

Determining Compensation

Compensation is all money, real or personal property, food, shelter, or services received by the individual at or after the time of transfer in exchange for the asset.

Compensation includes items or services received by the individual prior to the transfer only if they were provided as a result of a binding contract between the parties involved. The contract must have been established at or before the transfer.

The contract must indicate that:

• The items are being provided in exchange for payment; and

• The transfer constitutes total or partial payment.

The value of the compensation is based on:

• The agreement;

• The expectation of the parties at the time of the transfer; and

• The form of compensation.

The value of compensation is the gross amount paid or agreed to be paid. The value is not reduced by expenses attributed to the sale.

Forms of Compensation

Forms of compensation are valued as follows:

• Cash is valued at the total amount paid or agreed to be paid.

• Real or personal property is valued at the fair market value at the time of transfer.

• Support and/or maintenance are valued based on actual current market value and the length of time it has been and/or is expected to be provided.

• Services are valued at the market value of such services