When families in Louisiana begin exploring nursing home or assisted living options, one of the first fears that arises is financial ruin. The cost of long-term care can easily reach thousands of dollars per month, and many people assume they must spend down everything they have worked for before qualifying for Medicaid. Fortunately, that’s not true. With the right legal guidance, you can protect your home, savings, and legacy while still receiving the care you or your loved one needs.
Understanding Medicaid Long-Term Care in Louisiana
Louisiana’s Medicaid Long-Term Care program helps pay for nursing home and certain in-home services for individuals who meet strict financial and medical requirements. The key factor in qualifying is your “countable” income and assets. Medicaid looks at both to determine eligibility, and the rules can be surprisingly complex.
To qualify financially in 2025, an individual applicant generally must have less than $2,000 in countable assets. A married couple where only one spouse needs care faces different standards, allowing the healthy spouse (known as the “community spouse”) to keep a portion of the couple’s assets and income. This rule exists so that one spouse isn’t left destitute when the other enters long-term care.
What Medicaid Considers “Countable” Assets
Medicaid counts cash, checking, and savings accounts, stocks, bonds, and other liquid assets toward the $2,000 limit. However, not everything you own counts. For example, your primary residence is usually exempt as long as your equity interest is under a certain limit and you intend to return home. Personal belongings, one vehicle, household goods, and prepaid funeral arrangements are also excluded.
This means careful planning can preserve significant assets. Many people mistakenly give away money or property to children in an attempt to qualify faster, but that approach often backfires. Medicaid has a five-year “look-back” period. Any transfers for less than fair market value during that period may result in a penalty, delaying your eligibility for benefits.
Medicaid Planning Strategies That Work
The safest and most effective way to protect your assets is through legitimate legal strategies that comply with state and federal Medicaid rules. One common approach involves creating a Medicaid Asset Protection Trust (MAPT). By placing certain assets in a properly structured trust well in advance of needing care, those assets can be protected after the five-year look-back period ends.
Other options may include converting countable assets into exempt ones, purchasing annuities that meet Medicaid requirements, or transferring ownership of the home to a spouse through permitted spousal transfers. Every family’s financial picture is unique, so the right plan depends on your income, marital status, and the timing of your care needs.
It’s also important to remember that Medicaid covers more than nursing home stays. Some individuals may qualify for in-home or community-based services through waiver programs, allowing them to receive care while remaining in their own homes. These programs have the same strict eligibility requirements, but with careful planning, they can provide an excellent alternative for those who want to maintain independence while receiving the support they need.
Why Professional Guidance Matters
Louisiana Medicaid rules are detailed and frequently updated. A single mistake, such as a misreported asset or an improper transfer, can result in costly delays or denials. Working with an experienced Medicaid planning attorney ensures that your application is handled correctly and that your financial plan aligns with both state and federal law.
The attorneys at Losavio & DeJean, LLC help Louisiana families navigate Medicaid eligibility and long-term care planning with confidence. If you’re concerned about protecting your assets or qualifying for benefits, reach out today to learn how the right strategy can secure your care and preserve what matters most.