Louisiana Medicaid Long Term Care Eligibility in 2025

Louisiana Long Term Care

Louisiana is an income cap state for 2025, meaning that there is a hard income limit for Medicaid long-term care benefits. While non-income cap states allow applicants to spend down excess income to qualify, Louisiana requires applicants to fall below the income limit at the time of application. However, Louisiana offers a Medically Needy program for certain cases, which can allow individuals exceeding the income limit to spend down their income using incurred medical expenses to meet Medicaid eligibility requirements.

Louisiana’s Medicaid program offers payment for long-term care support services, including full Medicaid health coverage, to eligible individuals requiring assistance with activities of daily living (ADLs) such as eating, bathing, dressing, and grooming. Services may be provided in a facility or at home.

Eligibility in 2025:

1. Residency and Citizenship – The applicant must be a Louisiana resident and a U.S. citizen or have proper immigration status.

2. Age/Disability – Applicants must be 65 or older, blind, or disabled and must meet medical requirements consistent with the level of care requested. A minimum of thirty (30) consecutive days of care is required.

3. Income Limitations – For single applicants, income (including wages, Social Security benefits, pensions, veteran’s benefits, annuities, and more) must be no higher than $3,021/month to qualify. Certain income exclusions apply, including a personal needs allowance of $40/month. Veterans receiving a pension can retain an additional $90/month alongside this allowance.

Eligibility for long-term care is determined solely based on the applicant’s income. After certain deductions, including payments for uncovered medical expenses and allowances for spouses or dependents, remaining income must be applied toward care costs.

4. Asset Limitations – Assets are categorized as Exempt or Available. Non-exempt assets must be liquidated and applied toward care costs before Medicaid eligibility. Louisiana enforces a 5-year look-back period, penalizing the sale of assets below fair market value or gifting of resources.

Exempt Assets in 2025:

$2,000 or less in countable assets for single applicants.
One home is exempt if equity is ≤ $788,000, the applicant plans to return, or a spouse, child under 21, or disabled person resides in it. Proceeds from a sold exempt home are countable assets.
One automobile, regardless of equity.
Burial spaces and irrevocable burial funds worth ≤ $10,000.
Personal property, household furnishings, clothing, jewelry, and other non-saleable items.
Life insurance with a face value ≤ $10,000.

Spousal Rules in 2025:

The community spouse may retain non-exempt assets up to $152,020. If assets are below this amount, the institutionalized spouse can transfer resources to meet the minimum. Community spouses may also retain part of the institutionalized spouse’s income, up to a maximum of $3,898.50/month.

Louisiana Long Term Care Insurance Partnership in 2025:

This program protects assets equivalent to the benefits paid out by long-term care insurance policies. For example, a policy with a maximum benefit of $165,000 exempts $165,000 in assets when determining Medicaid eligibility. Each spouse must purchase individual policies for protection.