Indiana Medicaid & Elder Care
Indiana's PathWays for Aging offers home and community-based services for seniors with an income cap, often requiring Miller Trusts for eligibility, and currently manages a significant waitlist.
Medicaid Report Card
Overall State Performance Index
Based on CMS Nursing Home Compare + state Medicaid agency data
View Methodology arrow_forwardIndiana Monthly Costs
Indiana's long-term care costs are generally on par with the national average.
Waiver Programs
Indiana PathWays for Aging Waiver
Also called: Aged and Disabled Waiver (historical), HCBS Waiver
The Indiana PathWays for Aging Waiver serves individuals aged 60 and older who meet a Nursing Facility Level of Care, providing comprehensive home and community-based services. This program aims to support seniors in maintaining independence and living in their homes or other community settings, such as assisted living facilities, rather than requiring institutional care.
- check_circle Adult Day Service
- check_circle Adult Family Care
- check_circle Assisted Living
- check_circle Attendant Care
- check_circle Care Management
- check_circle Caregiving Coaching
- check_circle Community Transition
- check_circle Home and Community Assistance
- check_circle Home-Delivered Meals
- check_circle Home Modifications
- check_circle Home Modification Assessment
- check_circle Integrated Health Care Coordination
- check_circle Nutritional Supplements
- check_circle Participant-Directed Home Care Services
- check_circle Personal Emergency Response System
- check_circle Pest Control
- check_circle Respite Care Services
- check_circle Specialized Medical Equipment and Supplies
- check_circle Structured Family Caregiving
- check_circle Transportation
- check_circle Vehicle Modifications
warning Waitlist Alert
The PathWays for Aging Waiver has a capped number of participant slots, leading to a waitlist. As of April 2026, there are 11,791 individuals on the waitlist. Individuals transitioning from a nursing home or hospital may receive priority for waiver placement.
2026 Eligibility Requirements
| Criteria | Individual Limit | Married (Both Applying) |
|---|---|---|
| Monthly Income | $2,982 | $5,964 |
| Asset Limit | $2,000 | $3,000 |
| Home Equity Limit | $752,000 | |
| Level of Care | Nursing Home Level of Care (NHLOC) | |
Estate Recovery Warning
Indiana's Medicaid Estate Recovery Program is aggressive, seeking reimbursement for long-term care costs paid after age 55 from the deceased recipient's probate estate. Recovery can be delayed or waived under specific hardship conditions for surviving family members.
Spend-Down & Asset Protection
PROTECTED ASSETS
COMMON PITFALLS
- warning Look-back Period: Gifts or asset transfers for less than fair market value within 60 months (5 years) prior to applying for Medicaid will trigger a penalty period of ineligibility.
- warning Excess Income: Failing to establish and properly fund a Miller Trust if monthly income exceeds the Medicaid cap will result in denial of long-term care benefits.
- warning Joint Accounts: The full balance of joint bank accounts is often counted as the applicant's asset unless clear evidence proves otherwise.
First Steps for Families
Locate your ADRC
Contact your local Indiana Aging and Disability Resource Center.
Gather 5 years of records
Bank statements, deeds, asset transfers for the Medicaid look-back period.
Financial assessment
Consult a Medicaid planner if assets exceed $2,000.
Resource Contact
Indiana Family and Social Services Administration
How to Apply for Indiana Long-Term Care Medicaid
Assess Level of Care
Contact your local Area Agency on Aging (AAA) for an initial assessment to determine if you meet the Nursing Facility Level of Care.
Gather Records
Collect 60 months of financial statements, income verification, property deeds, and other personal documents required for the application.
Setup Miller Trust (if needed)
If your monthly income exceeds the Indiana Medicaid income cap, establish an irrevocable Miller Trust to deposit your excess income.
Submit Application
Apply online via the FSSA Benefits Portal, in person at a Division of Family Resources (DFR) office, or by phone at (800) 403-0864.
Attend Interviews
Be prepared for caseworker evaluations and promptly provide any additional requested documentation to avoid delays.
Receive Determination
Await notification of your eligibility status from the FSSA. The processing time can take up to 90 days.
Documents You'll Need
Financial Verification
- 60 months of bank statements
- Stock/bond certificates
- Retirement account information
- Life insurance policies (cash value)
- Contents of safety deposit boxes
Income Verification
- Social Security award letters
- Pension stubs
- VA benefit statements
- Recent tax returns
- Proof of other income sources
Medical/Identity
- Birth certificate
- Photo ID
- Social Security card
- Medicare card
- Health insurance cards
- Medical assessments (if under 65)
Property/Residency
- Home deed and other property deeds
- Vehicle registration/title
- Proof of Indiana residency (e.g., utility bill)
- Rental/lease agreements
- Burial plot deeds/prepaid funeral arrangements
Frequently Asked Questions About Indiana Medicaid
Does Indiana Medicaid pay for assisted living?
Yes, through the Indiana PathWays for Aging Waiver, Medicaid can cover care services provided in assisted living facilities for eligible seniors. However, it is important to note that the waiver typically does not cover the cost of room and board, which remains the resident's responsibility. Families should inquire directly with assisted living communities about their participation in the PathWays for Aging program.
What is the Indiana Medicaid income limit for seniors in 2026?
For long-term care Medicaid, including nursing home care and Home and Community-Based Services through the PathWays for Aging Waiver, the individual income limit for seniors in Indiana is $2,982 per month in 2026. If a senior's monthly income exceeds this cap, they may still qualify by establishing a Qualified Income Trust, also known as a Miller Trust, to deposit their excess income.
How long is the HCBS waiver waitlist in Indiana?
The Indiana PathWays for Aging Waiver, which provides Home and Community-Based Services for seniors, has a waitlist due to capped participant slots. As of April 2026, there are 11,791 individuals on this waitlist. While the official length of time is not published, estimates suggest a wait time of 1-2 years. Priority for placement may be given to individuals transitioning from a nursing home or hospital setting.
Will Medicaid take my parent's house in Indiana?
Indiana's Medicaid Estate Recovery Program (MERP) is legally mandated to seek reimbursement for long-term care costs paid by Medicaid after a recipient's death, and this can include placing a lien on their home. However, recovery is typically delayed if a surviving spouse, a child under 21, or a blind or permanently disabled child resides in the home. Hardship waivers are also available if recovery would cause substantial undue hardship for surviving beneficiaries.
Can I be paid to care for my parent through Indiana Medicaid?
Yes, Indiana's Medicaid program offers options for family caregivers to receive compensation through its Home and Community-Based Services waivers, specifically the PathWays for Aging Waiver. Programs like Structured Family Caregiving and Participant-Directed Attendant Care Services allow eligible family members, including spouses and adult children, to be paid for providing care to their loved ones at home. Eligibility depends on the care recipient's needs and the specific program requirements.
Medicaid vs Medicare for long-term care in Indiana?
Medicare is a federal health insurance program primarily for individuals aged 65 or older, or those with certain disabilities, and it generally covers short-term, skilled nursing care or rehabilitation. It does not typically cover long-term custodial care. In contrast, Indiana Medicaid, particularly through the PathWays for Aging program, is a state and federally funded program designed to cover extensive long-term care services, both in nursing facilities and through home and community-based waivers, for eligible seniors with limited income and assets.
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Last updated: April 24, 2026. Sources: Indiana Family and Social Services Administration, CMS Nursing Home Compare, Genworth 2024 Cost of Care Survey. Eligibility rules are set by each state Medicaid agency and update annually. We cite the agency name, statute, or CMS data source for every figure on this page; see our methodology and editor.