Indiana Medicaid for Seniors & Long-Term Care
Updated August 2026
Federal legislation signed July 4, 2025 (H.R. 1) added community engagement (work) requirements to Medicaid for certain adults. Seniors age 65 and older are fully exempt, and individuals receiving long-term services and supports are also exempt. Contact FSSA at 800-457-4584 for questions about your specific eligibility status.
$2,000
Individual asset (resource) limit
PathWays for Aging
Indiana's primary HCBS waiver for seniors 60+
$2,982/mo
2026 individual income limit for nursing home / HCBS Medicaid
Indiana PathWays for Aging is the primary long-term care option for seniors
Indiana's primary long-term services and supports program for seniors is Indiana PathWays for Aging, a managed long-term services and supports (MLTSS) program operating under 1915(b) managed care and 1915(c) home and community-based services Medicaid waiver authority. Health coverage under PathWays began July 1, 2024, replacing the former Aged & Disabled Waiver, Hoosier Care Connect, and fee-for-service Nursing Home Medicaid for Hoosiers age 60 and older. Eligible seniors receive coordinated care from one of three managed care entities (Anthem, Humana, or UnitedHealthcare), covering personal care assistance, adult day services, home-delivered meals, respite care, caregiver support, environmental modifications, and transportation. Contact FSSA at in.gov/fssa or 800-457-4584 for current PathWays service details and eligibility requirements.
Work requirements under H.R. 1 — seniors are exempt
Nursing facility coverage
Indiana Medicaid covers nursing facility care for individuals who meet both financial and clinical eligibility requirements. Clinical eligibility requires a Level of Care (LOC) assessment showing a nursing facility level of need, while financial eligibility requires meeting Medicaid income and asset limits.
For individuals in a nursing facility, Indiana Medicaid generally requires the resident to contribute most of their income toward the cost of care, retaining only a Personal Needs Allowance (PNA) of $52 per month (subject to change). The Medicaid program pays the difference between what the resident contributes and the facility's Medicaid rate. If income exceeds the institutional Medicaid limit, Indiana may use a Miller Trust (qualified income trust) arrangement to route excess income through a trust account, making the person financially eligible.
Income and asset limits for long-term care Medicaid in Indiana
For nursing home care or PathWays HCBS, the 2026 individual applicant income limit is $2,982 per month (300% of the SSI Federal Benefit Rate). When both spouses are applicants, each is evaluated individually against this limit; a non-applicant spouse's income is not counted. Indiana follows the standard Medicaid long-term care asset structure, with a 60-month look-back period for asset transfers made before applying.
| Category | Limit | Notes |
|---|---|---|
| Single individual income | $2,982/month (2026) | 300% of SSI Federal Benefit Rate |
| Single individual assets | $2,000 | Countable resources only |
| Married, both applying | $3,000 combined assets | Each spouse's income evaluated separately |
| Married (community spouse) | Up to $162,660 (2026 max CSRA) | Community Spouse Resource Allowance (CSRA) |
| Home | Exempt | While spouse/dependent lives there; equity limit $752,000 (2026) |
| One vehicle | Exempt | Regardless of value |
Single individual income
- Limit
- $2,982/month (2026)
- Notes
- 300% of SSI Federal Benefit Rate
Single individual assets
- Limit
- $2,000
- Notes
- Countable resources only
Married, both applying
- Limit
- $3,000 combined assets
- Notes
- Each spouse's income evaluated separately
Married (community spouse)
- Limit
- Up to $162,660 (2026 max CSRA)
- Notes
- Community Spouse Resource Allowance (CSRA)
Home
- Limit
- Exempt
- Notes
- While spouse/dependent lives there; equity limit $752,000 (2026)
One vehicle
- Limit
- Exempt
- Notes
- Regardless of value
Spousal protections: keeping the community spouse financially secure
When one spouse enters a nursing facility and the other remains at home (the "community spouse"), Indiana follows federal spousal impoverishment protections under 42 U.S.C. § 1396r-5. These protections exist to prevent institutionalization from impoverishing the spouse who remains in the community.
- Community Spouse Resource Allowance (CSRA): the at-home spouse keeps 50% of the couple's combined countable assets, up to $162,660 (2026 max); if their share is under $32,532, they can keep 100% of assets up to $32,532
- Minimum Monthly Maintenance Needs Allowance (MMMNA): the at-home spouse is entitled to a minimum monthly income of $2,705 (effective 7/1/26–6/30/27), up to a maximum allowance of $4,067/month — if their own income falls short, they may receive an allowance from the institutionalized spouse's income
- The home is exempt while the community spouse lives in it
- A fair hearing process is available if the CSRA calculation seems incorrect
PACE: Program of All-Inclusive Care for the Elderly
PACE operates at select sites in Indiana, providing comprehensive medical and social services to eligible seniors age 55+ who require nursing facility level of care but can be safely served in the community. PACE participants receive all covered Medicaid and Medicare services through the PACE organization at no additional premium cost. Check with FSSA or the National PACE Association (npaonline.org) for current PACE site availability in Indiana.
Medicaid estate recovery
After a Medicaid long-term care recipient dies, Indiana must seek to recover Medicaid costs from the estate under the Medicaid Estate Recovery Program (MERP), which can affect the home. Estate recovery applies to long-term care recipients age 55 and older. Consult an Indiana elder law attorney before making asset transfers, given the 60-month look-back period that applies to gifts and transfers made for less than fair market value.
Indiana Medicaid (Healthy Indiana Plan)
- Indiana FSSA (PathWays for Aging / Medicaid): 800-457-4584
- National PACE Association — Indiana PACE site availability: npaonline.org
Related guides
Medicaid for Seniors
How Medicaid pays for nursing home and long-term care for older adults.
Read more →Estate Recovery
When states can seek reimbursement from an enrollee's estate after death.
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How Social Security benefits and Medicaid eligibility interact.
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