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Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued October 21, 2025 Page 4 of I-1670 Replacing January 27, 2025 Revised/added text indicated by underscore Deleted text indicated by “**” • If the transferred asset qualifies for an exception, a penalty period does not apply.

• If no exceptions apply, compute the penalty period.

Refer to 1-1674 Exceptions to Application of Transfer of Asset Penalties.

Assets to which an individual or spouse is entitled to includes assets that they would be or would have been entitled to if action had not been taken to avoid receiving the assets.

It is necessary to consider transfer of assets for less than FMV for any income or resources the individual or their spouse is entitled to but does not receive because of any action by:

• The applicant/beneficiary;

• The spouse of the applicant/beneficiary, where the spouse is acting in place of or on behalf of the applicant/beneficiary, except as allowed under Spousal Impoverishment provisions (Refer to I-1666, Spousal Impoverishment Resource Provisions);

• A person, including a court or administrative body, with legal authority to act on behalf of the applicant/beneficiary or their spouse, i.e. power of attorney, curator, or a parent of a minor child;

• A person, including a court or administrative body, acting at the direction of or upon the request of the individual, or their spouse; or

• The co-holder of an asset jointly held with the applicant/beneficiary.

Actions which would prevent income or resources to be received include, but are not limited to, the following:

• Irrevocably waiving all or part of federal, state, or private pensions or annuities;

• Giving away a lump sum payment, even the month of receipt;