Medicaid Long-Term Care Guide in Indiana
Long-term care eligibility, benefits, and how to apply through the Family and Social Services Administration (FSSA) Office of Medicaid Policy and Planning (OMPP).
What makes Indiana Medicaid different
In Indiana, Medicaid for the Aged, Blind, and Disabled, including those in a nursing home, is provided via two programs: Hoosier Care Connect (managed care for persons not eligible for Medicare) and Traditional Medicaid (fee-for-service). In addition to nursing home care and care in adult foster care homes and assisted living facilities, IN Medicaid pays for non-medical services and supports to help frail seniors remain living at home.
Administered by the Family and Social Services Administration (FSSA) Office of Medicaid Policy and Planning (OMPP).
Program Types
Institutional / Nursing Home Medicaid
An entitlement; anyone who is eligible will receive assistance. Benefits are provided only in Medicaid-certified nursing homes.
Level of care: Nursing Facility
Medicaid Waivers / Home and Community Based Services
Not an entitlement; the number of participant slots is limited and waiting lists may exist. Intended to delay nursing home admissions, services are provided at home, adult day care, adult foster care, or in assisted living.
Level of care: Nursing Facility
Regular Medicaid / Aged Blind and Disabled
An entitlement; meeting the eligibility requirements ensures services will be received. While Regular Medicaid is not Long-Term Care Medicaid, some long-term care services, such as personal care assistance or adult day care, may be available.
Level of care: Help with ADLs
2026 Indiana Medicaid Long-Term Care Eligibility for Seniors
Institutional / Nursing Home Medicaid*
Medicaid Waivers / Home and Community Based Services†
Regular Medicaid / Aged Blind and Disabled
*All of a beneficiary's monthly income, with the exception of a Personal Needs Allowance of $52 / month, Medicare premiums, and potentially a Needs Allowance for a non-applicant spouse, must be paid to the nursing home. This is called a Patient Liability.
†Based on one's living setting, a program beneficiary may not be able to keep monthly income up to this level.
‡In Indiana, persons who are determined eligible for SSI are automatically approved for Regular Medicaid, including long-term services and supports, given one meets the functional criteria.
Explore Indiana Medicaid Programs
Compare programs, see caregiver pay rates, get step-by-step application guidance, and check your eligibility — all specific to Indiana.
Long-term care Medicaid guide
Eligibility · Caregiver pay · How to apply · 2026 data
Important: Rates vary — contact your state Medicaid office for current figures. This tool provides general guidance, not legal or financial advice.
Compare Medicaid Programs — Indiana
How the main LTC programs available in Indiana compare side by side.
| Program | Pay | Pay type | Tax-free? | Spouse OK? | Waitlist? |
|---|---|---|---|---|---|
| Consumer-directed HCBS | ~$16/hr | Hourly wage | No | Yes | Often |
| Structured Family Caregiving (SFC) | ~$40/day | Daily stipend | Yes | Yes | Often |
| Personal Care Agreement | Market rate (from assets) | Private pay | No | Yes | No |
| VA Aid & Attendance | Up to $2,874/mo | Monthly pension | Yes | Yes | No |
Indiana Medicaid programs
A&D Waiver
Structured Family Caregiving
Attendant Care Program (ACP)
Sources: KFF (Jan 2026), medicaidplanningassistance.org (Feb 2026). Programs and rates change — verify with your state Medicaid office.
How Family Caregivers Get Paid Through Medicaid in Indiana
If you're a family member providing care, you may be able to get paid through Medicaid — often at rates comparable to a home care agency.
Structured Family Caregiving (SFC) — tax-free daily stipend
Available in IndianaHow to enroll: Contact Careforth (careforth.com) or FreedomCare (freedomcare.com) — both operate in Indiana and handle enrollment at no charge.
Consumer-directed care — hourly pay
Available in IndianaHow it works: The person receiving care becomes the "employer" — they hire you and a fiscal intermediary handles payroll, taxes, and paperwork on their behalf. You receive a paycheck just like a regular job.
How to apply: FSSA · in.gov/medicaid · Careforth or Paid.Care for SFC
Personal Care Agreement — private pay from assets
Available to any familySources: KFF Medicaid Home Care Survey 2025 (Jan 2026), Careforth FAQ (Jan 2026), IRS Notice 2014-7.
How to Apply for Medicaid Long-Term Care in Indiana
What to expect when applying for LTC Medicaid and getting family caregiver pay set up in Indiana. The process typically takes 45–90 days from application to first paycheck.
Apply in Indiana: FSSA · in.gov/medicaid · Careforth or Paid.Care for SFC
Medicaid Eligibility Screener — Indiana
Answer 7 quick questions — we'll check the financial and care requirements for Indiana and explain what each one means.
What is the marital status of the person who needs care?
Medicaid looks at only the applicant's income and assets — but being married triggers special protections that let the healthy spouse keep significantly more money.
Sources
- CMS Medicaid — eligibility, HCBS waivers, and long-term services medicaid.gov/medicaid/eligibility
- CMS Medicaid — Home & Community-Based Services (HCBS) medicaid.gov/medicaid/home-community-based-services
- Social Security Administration — SSI Federal Benefit Rate (2026 figures) ssa.gov/oact/cola/SSI.html
- CMS — Spousal Impoverishment standards (CSRA & MMMNA) medicaid.gov/medicaid/eligibility/spousal-impoverishment
- CMS — Estate Recovery and the 5-year lookback period medicaid.gov/medicaid/eligibility/estate-recovery
- IRS Notice 2014-7 — Tax treatment of Medicaid caregiver payments irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-from-income
Educational guidance only — not legal or financial advice. Your state Medicaid office determines actual eligibility.
Key Rules at a Glance
- Nearly any income from any source is counted towards the limit, including employment wages, alimony, pension payments, SSDI, SSI, IRA withdrawals, and stock dividends.
- Nationally, Holocaust restitution payments are not counted as income.
- In IN, the Veteran's Aid & Attendance and Housebound Pensions, which are above and beyond the Basic VA Pension, do not count.
- When only one spouse applies for Institutional Medicaid or a HCBS Medicaid Waiver, only the applicant's income is counted.
- The MMMNA in IN is $2,644 (eff. 7/1/25 – 6/30/26). If a non-applicant's income is under this amount, income can be transferred from the applicant spouse.
- A non-applicant spouse can further increase their Spousal Income Allowance if housing and utility costs exceed a 'shelter standard' of $793 / month (eff. 7/1/25 – 6/30/26).
- In 2026, the Maximum MMMNA is $4,067 — a Spousal Income Allowance cannot push a non-applicant's income above this amount.
- For Regular Medicaid, both spouses' income is counted. There is no MMMNA for a non-applicant spouse.
- Countable assets include cash, stocks, bonds, investments, cryptocurrency, bank accounts (money market, savings, checking), and real estate in which one does not reside.
- In Indiana, an applicant's AND their spouse's IRA / 401K is counted as an asset.
- Non-countable (exempt) assets include personal belongings, household furnishings, an automobile, irrevocable burial trusts, and generally one's primary home.
- All assets of a married couple are considered jointly owned regardless of the Medicaid program.
- The CSRA allows the non-applicant spouse to retain 50% of the couple's assets, up to $162,660 (2026). If the non-applicant's half is under $32,532, up to $32,532 can be retained.
- There is no CSRA for Regular Medicaid.
- The primary home is automatically exempt if the applicant's spouse, child under 21, or permanently blind or disabled child (of any age) lives in it.
- If this is not the case, there is a home equity interest limit of $730,000 (in 2026).
- Home equity is the value of the home minus any outstanding debt against it. Equity interest is the amount of equity owned by the applicant.
- If neither the applicant nor qualifying family live in the home, the applicant must have Intent to Return.
- There is no home equity interest limit for Regular Medicaid.
- The home is NOT exempt from Medicaid's Estate Recovery Program. After a beneficiary's death, Indiana's Medicaid agency attempts reimbursement of care costs through the deceased's estate.
- Indiana has a 5-year (60-month) Look-Back Period for Nursing Home Medicaid and Medicaid Waivers that immediately precedes the application date.
- During the look-back, Medicaid checks all past asset transfers, including those by one's spouse, to ensure none were gifted or sold under fair market value.
- Violations result in a Penalty Period of Medicaid ineligibility.
- Indiana allows a 'de minimis transfer allowance' of up to $1,200 annually (in total) to family members and/or tax-exempt non-profit organizations without violating the Look-Back Period.
- The U.S. Federal Gift Tax Rule ($19,000 per recipient in 2026) does not extend to Medicaid eligibility — gifting under this rule still violates the Look-Back Period.
- MMMNA: $2,644 (eff. 7/1/25 – 6/30/26) · CSRA: $162,660 · CSRA Min: $32,532
- When only one spouse applies for Institutional Medicaid or a Medicaid Waiver, only the applicant's income is counted.
- The MMMNA in Indiana is $2,644 (eff. 7/1/25 – 6/30/26). If the non-applicant's income is under this amount, income can be transferred from the applicant spouse.
- A non-applicant spouse can further increase their allowance if housing/utility costs exceed the 'shelter standard' of $793 / month.
- The Maximum MMMNA is $4,067 — a Spousal Income Allowance cannot push income above this level.
- The CSRA allows the non-applicant spouse to retain 50% of the couple's assets, up to $162,660. The minimum CSRA is $32,532.
- For Regular Medicaid, both spouses' income is counted and there is no MMMNA or CSRA.
- Qualified Income Trusts (Miller Trusts) — QITs allow persons over the income limit to become income-eligible for Nursing Home Medicaid or a Medicaid Waiver. Monthly income deposited into this irrevocable trust no longer counts as income. A trustee has legal control and funds can only be used for specific purposes such as paying medical expenses.
- Asset Spend-Down — Spend excess assets on non-countable items such as home repairs and additions, home modifications (wheelchair ramps, chair lifts, walk-in tubs), prepaying funeral/burial expenses, and paying off debt. Keep documentation as proof the Look-Back Rule was not violated.
- Medicaid Planning — Work with a Medicaid Planning Professional to employ strategies to become eligible and protect your home from Medicaid's Estate Recovery Program.
Indiana does not have a Medically Needy / spend-down pathway for income. Qualified Income Trusts (Miller Trusts) are used for persons over the income limit.
Indiana Medicaid Programs
Pathways for Aging
Implemented 7/1/24, this managed care program serves state residents aged 60+. Persons requiring a Nursing Facility Level of Care can receive nursing facility care or Home and Community Based Services at home, assisted living, or adult foster care. Benefits may include assistance with daily living, meal delivery, adult day care, home modifications, personal emergency response systems, and respite care. Beneficiaries can choose care providers and may hire family for personal care assistance.
Indiana Structured Family Caregiving (SFC)
A unique benefit via Pathways for Aging and PACE that allows an aging parent to move into the home of their adult child (or vice versa) and the state compensates the adult child to serve as their parent's caregiver. Other relatives can also become the paid caregiver. Through Pathways, a spouse or legal guardian can also be paid through SFC.
Health & Wellness (H&W) Waiver
Formerly the Aged and Disabled (A&D) Waiver, the H&W Waiver provides Home and Community Based Services for persons aged 59 and younger. Program beneficiaries aged 60+ were transitioned to Pathways for Aging on 7/1/24.
Program of All-Inclusive Care for the Elderly (PACE)
The benefits of Medicaid, including long-term care services, and Medicare are combined into one program. Additional benefits, such as dental and eye care, may be available.
Money Follows the Person (MFP)
A federal program that helps institutionalized Medicaid-eligible persons transition back home or into the community.
How to Apply
- Apply online via the FSSA Benefits Portal ('Indiana Application for Health Coverage')
- Apply in person at a local FSSA Division of Family Resources (DFR) office
- Call DFR at 1-800-403-0864
Seniors should be certain they meet all eligibility requirements prior to applying. If one does not meet the criteria, or is unsure, Medicaid Planning is recommended.
More Indiana Long-Term Care Resources
Take the Next Step for Indiana Medicaid
Find out if you qualify or see how Medicaid fits into your overall long-term care plan.
Sources & references
Verified May 2026- Centers for Medicare & Medicaid Services — Long-Term Services & Supports
- Administration for Community Living — State Medicaid Agencies
- Centers for Medicare & Medicaid Services — Medicaid Eligibility
- American Council on Aging — About Medicaid Planning Assistance
- Family and Social Services Administration (FSSA) Office of Medicaid Policy and Planning (OMPP) — Indiana Medicaid — Official site