Louisiana Medicare Savings Program No Asset Limit

Louisiana Waived the Asset Test

If you've been told that having too much money in the bank disqualifies you from the Medicare Savings Programs, that information is wrong for Louisiana. The state eliminated the resource test for QMB, SLMB, and QI effective October 1, 2019, using authority under Section 1902(r)(2) of the Social Security Act. The waiver is codified in the Louisiana Medicaid Eligibility Manual Chart Z-900 and Policy Section I-1630.

This means your bank accounts, savings, certificates of deposit, stocks, bonds, retirement accounts (401(k), IRA), home, vehicles, real estate, life insurance policies, and prepaid burial plans are all completely excluded from the eligibility determination. The only thing LDH evaluates for MSP eligibility is your monthly countable income.

Why the Confusion Exists

The $9,950 individual / $14,910 couple resource limit that shows up in most online guides and even some official Medicare publications is the federal default. States have the option to use it or waive it. Louisiana chose to waive it entirely for the three main MSP tiers.

National guides — including those published by Medicare.gov, AARP, and benefits clearinghouses — routinely present the federal asset limits as universal. A caregiver in Rapides Parish reading that their parent's $45,000 credit union balance disqualifies them would never apply. But under Louisiana rules, that parent can qualify for QMB if their monthly countable income is under $1,350.

What the Waiver Does and Doesn't Cover

The total asset waiver applies to:

• QMB (Qualified Medicare Beneficiary)
• SLMB (Specified Low-Income Medicare Beneficiary)
• QI (Qualifying Individual)

It does not apply to:

• QDWI (Qualified Disabled and Working Individuals) — still enforces a $4,000 single / $6,000 couple asset limit
• Full Medicaid Long-Term Care — still enforces a $2,000 resource limit with specific exemptions for the home, one vehicle, and certain burial funds
• Medically Needy Spend-Down — separate rules entirely

This distinction matters when a caseworker's questions seem to contradict the no-asset rule. The standard Medicaid application form captures asset information for all programs, including long-term care. If you're applying only for MSP coverage, the asset fields cannot be used as grounds for denial.

What to Do If You're Denied Over Assets

An asset-based denial for a QMB, SLMB, or QI application is a policy violation. If it happens:

1. Keep the denial notice — it must cite the specific Medicaid Eligibility Manual section and the reason for denial
2. Request a fair hearing with the Division of Administrative Law within 30 days of the notice date (within 10 days if you need to preserve existing benefits during the appeal)
3. Reference Chart Z-900 and Policy Section I-1630 in your appeal
4. Contact Louisiana SHIIP (1-800-259-5300) or a regional legal aid organization for help drafting the appeal

This is a known issue. Caseworkers trained on full Medicaid rules sometimes apply long-term care resource requirements to MSP applications by mistake. The appeal success rate for misapplied asset denials is high because the policy is unambiguous.

The Louisiana Medicare Savings Programs & Extra Help Guide covers the asset waiver in detail, including the exact policy citations to reference if you need to push back on an incorrect denial.

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