Louisiana Revamps Medicaid Eligibility Manual

On February 7, 2008, the Louisiana Department of Health and Hospitals reissued many relevant provisions of the Medicaid Eligibility Manual, replacing provisions that had been in effect since October 1, 1995. The changes are sweeping and much-anticipated. The revisions adopted many of the provisions of the Deficit Reduction Act of 2005, and made changes retroactive back to February 8, 2006.

Relevant changes include:

1. The look back date for transfers occurring on or after February 8, 2006 is 60 months;
2. For Medicaid applications on or after November 1, 2007, use $4,000 as the average monthly private pay cost;
3. The penalty period for assets transferred on or after February 8, 2006 for less than fair market value begins the month the applicant is determined eligible for Medicaid except for the transfer of resources;
4. If a transferred resource is returned, Medicaid will treat the resource as not having been transferred.

The new Louisiana Medicaid rules make it more difficult to protect your assets from the cost of long term care. I have to admit that the rules (particularly the one that provides that all transfers made since February 8, 2006) are subject to the 60 month look back date) are more stringent than what many other states have done.

My advice to most is the same: "If you want to protect all of your hard-earned assets from the rising cost of long term care, take the necessary action at least five years before you need Medicaid benefits."  If you want to know how the new Louisiana Medicaid eligibility rules affect you or your family, simply send me an e-mail at paul@rabalaislaw.com, describing your assets and income and any other particulars you feel are relevant, and then see how quickly I respond with some answers for you.

Paul A. Rabalais