Medicaid Eligibility for Seniors in Indiana

Navigating Medicaid eligibility for seniors in Indiana feels overwhelming for many individuals, including families making difficult long-term care decisions. At Senior Planning, we will guide you through Medicaid eligibility requirements in Indiana, available long-term and nursing home programs, and the application process so that you can navigate this chapter with confidence.

Indiana Medicaid Eligibility Requirements

What are the qualifications for Medicaid in Indiana?

To qualify for Medicaid in Indiana, seniors must be aged 65 or older, U.S. citizens, and residents of Indiana, and meet the income and asset limits outlined below. 

Indiana Medicaid Income Limits

What is the income limit for Medicaid in Indiana in 2025?

Below is an Indiana Medicaid eligibility income chart for seniors, outlining how the state evaluates financial eligibility. This varies by marital status and may be subject to change.

Funds that are considered income include Social Security, pensions, retirement accounts, wages, and annuity payouts. 

For married couples in which only one spouse is applying, Indiana has a spousal impoverishment protection limit of $2,643.75. This rule ensures the other spouse can keep enough income to remain financially stable. This does not apply to Regular Medicaid. 

Medicaid Asset Limits in Indiana for Seniors

The Indiana Medicaid asset limit must also be considered when looking at long-term care eligibility. This is outlined in the table below. 

Countable assets include bank accounts, investments, retirement accounts, additional properties or vehicles, and specific life insurance. Not included towards Indiana’s asset limit are the individual's primary residence, one vehicle, personal belongings, and irrevocable burial agreements. 

Regardless of whether one or both spouses are applying for long-term care, Medicaid considers all assets to be jointly owned. However, a Community Spouse Resource Allowance (CSRA) may apply when one spouse is applying for Medicaid Nursing Home or Home and Community-Based services.

Medicaid’s Look Back Rule: Medicaid has a 60-month (5-year) look-back period, during which all transfers made within the 5 years prior to application are reviewed to ensure nothing was transferred at fair market value with the intention of meeting the set financial limits. 

In Indiana, Medicaid permits applicants to gift up to $1,200 annually to family members or non-profit organizations without violating this Look Back Rule.

How to Qualify if you Exceed the Limits

Seniors whose financials exceed the set income and asset limits can still qualify through the following ways:

• Qualified Income Trusts (QITs): QITs, also known as Miller Trusts, enable individuals applying for Nursing Home Medicaid and Home and Community-Based services to still meet the eligibility requirements by placing excess income funds into the trust. The trust is managed by a trustee for specific approved purposes, such as paying for medical expenses not covered by Medicaid. 

• Asset Spend Down: In Indiana, individuals whose assets are above the set limit can “spend down” excess funds on approved non-countable assets, such as home repairs and modifications, prepaying burial expenses, or paying off existing debt. Proper documentation is required to ensure nothing violates Medicaid’s look-back period. 

How to Apply for Medicaid in Indiana for the Elderly

With Senior Planning, you can rest assured that the Medicaid application process will be as straightforward and stress-free as possible. Here are the general steps for applying:

1. Choose the Right Medicaid Program for You: For seniors seeking long-term care, Medicaid programs include Nursing Home Medicaid, Home and Community-Based Services, and Regular Medicaid.

2. Check Eligibility Requirements: With the right program selected, the next step is to review the Indiana Medicaid eligibility requirements, including the income and asset limits, to ensure you qualify. 

3. Gather Required Documents: Various documents are required to prove your eligibility for Medicaid in Indiana. These include:

   1. 1. A valid identification document (like a driver's license or government ID)

      2. Social Security card

      3. Bank statements

      4. Proof of income and assets

      5. Health insurance cards

      6. Medical records

Check out our complete Medicaid document checklist to learn more.

4. Complete and Submit the Application: Applicants can complete the Medicaid application and submit it online through the FSSA Benefits Portal or in person at your local FSSA Division of Family Resources office. 

Medicaid for Nursing Homes in Indiana

Medicaid covers the cost of nursing homes in Indiana for eligible individuals. This includes basic medical care, room and board, and meals. However, not all nursing homes in Indiana accept Medicaid, and availability may be limited. This should be confirmed directly with the facility. 

Medicaid for Assisted Living in Indiana

In addition to nursing home care, Medicaid provides long-term care services in assisted living settings. This program includes medical services, personal care, and other essential support.

Indiana Medicaid Long-Term Care Eligibility Support

Senior Planning provides support to seniors and their families, helping navigate each phase of the process to ensure that you or your loved one receives the necessary care. Reach out to Senior Planning today to begin the journey.

Frequently Asked Questions About Indiana Medicaid Eligibility

Where to apply for Medicaid in Indiana?

Individuals can fill out the Medicaid application and submit it online via the FSSA Benefits Portal or in person at their local FSSA Division of Family Resources office.

Does Indiana Medicaid count assets?

Yes. Countable assets include bank accounts, investments, retirement accounts, additional property or vehicles, and certain life insurance policies. Assets that do not count towards Indiana’s asset limit include the individual’s primary residence, one car, personal possessions, and irrevocable burial contracts.

How can I protect assets from Medicaid in Indiana?

Seniors who are over the limits can still qualify by using tools like Qualified Income Trusts (QITs) to redirect excess income, or by completing an approved asset spend down on items like home repairs, burial arrangements, or debt payoff. A Medicaid planning provider such as Senior Planning Services can guide you through these steps to ensure everything stays compliant with Indiana’s rules.