Property Insurance Proceeds Exempt for Louisiana Medicaid Eligibility

I had a telephone conversation the other day with someone who's mother received an $11,000 check from her property insurance company for roof damage that had occurred in a recent hail storm.

Her mother was about to apply for Medicaid and she wanted to know if her mother would be penalized for having this cash in her bank account, even though she planned to use the funds to repair or replace her roof.

I told her the funds were not countable based on her circumstances. The specific provision of our Louisiana Medicaid Eligibility Manual provides, "Do not count as resources the lump sum payments received due to claims resulting from natural disasters as long as the funds are used for replacement and repair of property."

Paul Rabalais