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Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued October 21, 2025 Page 9 of I-1670 Replacing January 27, 2025 Revised/added text indicated by underscore Deleted text indicated by “**” I-1673.3 Actions Not Considered as Transfer of Assets for Less Than FMV

There are some circumstances where the transfer of assets provision does not apply. A transfer of assets has not occurred in the following situations:

• Using an asset to repay a valid debt or make a purchase;

Note: Relatives and family members can legitimately be paid for care they provide; however, it is presumed that services provided for free at the time were intended to be provided without compensation. Therefore, any payment to a relative for care provided for free in the past is a transfer of assets for less than fair market value.

• Transfers of funds which do not result in a change of ownership (e.g., an authorized representative holding and managing funds for the sole benefit of an applicant/beneficiary or spouse as long as the funds are available to meet their needs);

• Removing an applicant/beneficiary's name from a joint account following successful rebuttal that the applicant/beneficiary is not owner of the resource; and

• Transactions, which render an asset inaccessible, but do not change the individual's degree of ownership of the asset. For example, an individual who jointly owns property with another individual can enter into an agreement with the joint owner not to sell the share without the joint owner’s consent.

• Transfer of an excluded asset with the exception of the home of an institutionalized individual.

Note: Transfer of a disregarded asset, such as CSV of life insurance policies, is a transfer for less than FMV.

I-1673.10 Personal Care Agreement

A Personal Care Agreement (PCA) is a legally binding contract that allows an individual (care recipient) to pay another person (caregiver) to provide personal care services. Services may include, but are not limited to, assistance with Activities of Daily Living (ADL), such as

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Official source

Louisiana Medicaid Eligibility Manual Eligibility Factors

There are some circumstances where the transfer of assets provision does not apply. A transfer of assets has not occurred in the following situations:

• Using an asset to repay a valid debt or make a purchase;

• Removing an applicant/beneficiary's name from a joint account following successful rebuttal that the applicant/beneficiary is not owner of the resource; and

• Transfer of an excluded asset with the exception of the home of an institutionalized individual.

Note: Transfer of a disregarded asset, such as CSV of life insurance policies, is a transfer for less than FMV.

I-1673.10 Personal Care Agreement