Analysis of the 2019 Louisiana Long Term Care Medicaid Rules

Every year the State of Louisiana's Department of Health adjusts certain Louisiana Long Term Care Medicaid asset and income limitations for Long Term Care applicants and recipients. The following is a summary of the changes made for 2019.

The Long Term Care Resource Limit for Single Individuals ($2,000) and Married Couples ($3,000) has not changed.

The Spousal Resource Standard has increased from the 2018 amount of $123,600, to the 2019 new limit of $126,420. What this means is that if one spouse is in a nursing home (the "institutionalized spouse") and one spouse still lives in the community (the "community spouse"), the the community spouse can retain up to $126,420 of Countable Resources. The rationale is that the spouse who is not in the nursing home needs assets to live off of.

Note that the Louisiana Home Equity Limit has increased from $572,000 in 2017, to $585,000 for 2019. Most people realize that the home is not a countable resource - it is an exempt asset. But what some don't realize is that when a Medicaid recipient dies, the State of Louisiana has Estate Recovery Rights which allows the State of Louisiana to force the sale of the home to reimburse Medicaid for what Medicaid spent on the deceased Medicaid recipient's care.

However, if the home, at the time of Medicaid application, is worth more than $585,000, then the applicant will not qualify for Medicaid due to Louisiana's Home Equity Limit of $585,000.

Regarding monthly income, the new Spouse's Maintenance Needs is $3,160.50 of monthly income. Generally, the Community Spouse will be permitted to keep the first $3,160.50 of the couple's monthly income. Exceptions to this rule apply, however, so work with the right estate planning attorney to protect as much of your assets and income as possible.

Finally, the Average Monthly Cost for Private Patients of Nursing Facility Services increased on March 1, 2018 from $4,000 to $5,000. This means that if you make an uncompensated transfer within five years prior to applying for Medicaid, you will be assessed a penalty period of the value of the transfer divided by $5,000.

Note that this post does not address any of the planning strategies that are available to help people protect what they own, nor is it an in depth discussion of the Medicaid definitions, such as countable resource or exempt asset, nor do these figures apply to all 50 states - each state is different so if you live outside of Louisiana, make sure you are working with the correct figures.

This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.

Paul Rabalais

Louisiana Estate Planning Attorney

Phone: (225) 329-2450