How Medicaid Can Help Pay for Long-Term Care in Indiana

Q: If I was denied Indiana Medicaid for having slightly too much income, should I reapply?

Possibly, yes — Indiana updates its long-term care (ABD) income limits on January 1 tied to federal COLA, but updates HIP and Hoosier Healthwise limits separately on March 1 tied to the new Federal Poverty Level. If you applied in January or February and were denied for being slightly over, reapplying after March 1 could change the outcome.

Q: What is Indiana's HCBS waiver called?

The Aged and Disabled (A&D) Waiver — Indiana's primary HCBS program for seniors and disabled adults who need nursing-facility-level care but prefer to remain at home.

Q: How long is the penalty period for an improper asset transfer in Indiana?

It depends on the amount, divided by Indiana's average private-pay nursing home cost (~$8,500/month). As an example, a $100,000 uncompensated transfer produces approximately 11.8 months of Medicaid ineligibility.

Published August 28, 2026 How we keep this accurate

This page is Indiana-specific. Medicaid long-term care rules vary significantly by state. See our national Medicaid Waivers Explained guide if you're elsewhere.

A timing detail worth knowing before you give up

Indiana updates its Medicaid income limits at two different points in the year, depending on the program: long-term care (ABD) limits update January 1, tied to the federal Social Security COLA, while HIP and Hoosier Healthwise limits update March 1, tied to the new Federal Poverty Level figures.

If you applied in January or February and were denied for having slightly too much income, don't assume that's final. Reapplying after March 1, once the updated figures take effect, could change the outcome — this is a real, actionable timing detail most people wouldn't think to check.

The Aged and Disabled Waiver

Indiana's primary HCBS program is the Aged and Disabled (A&D) Waiver, for seniors and disabled adults who need nursing-facility-level care but prefer to remain at home. Like most states' waivers, it's not an entitlement — enrollment slots are limited and waitlists may exist. Indiana also offers a separate Traumatic Brain Injury Waiver for a different population.

	A&D Waiver / Nursing Home Medicaid	"Regular" ABD Medicaid (non-LTC)
2026 income limit	$2,982/month	$1,330/month (updates March 1)
Asset limit	$2,000 (single)	$2,000 (single)
Guaranteed if eligible?	Nursing Home: yes. A&D Waiver: no — waitlist possible	Yes — an entitlement

Source: Indiana Family and Social Services Administration (FSSA); figures effective 2026.

A concrete example worth understanding

Indiana's transfer penalty is calculated by dividing an improperly transferred amount by the state's average private-pay nursing home cost (approximately $8,500/month in 2026). As a real illustration: a $100,000 uncompensated transfer produces roughly 11.8 months of Medicaid ineligibility. This is exactly why any gift or asset transfer within the 60-month look-back window needs real planning, not a quick decision.

Spousal protections

Community Spouse Resource Allowance: up to $162,660 — the federal maximum.

Minimum Monthly Maintenance Needs Allowance: $2,705/month (effective 7/1/26–6/30/27), with a shelter standard of $811.50/month that can increase the allowance up to a $4,067 ceiling for high housing costs.

If your income is over the limit

Indiana is an income-cap state — exceeding $2,982/month requires a Qualified Income Trust (Miller Trust) before Medicaid will approve long-term care coverage.

How to actually start

Contact your local Area Agency on Aging at 1-800-986-3500 to begin a functional eligibility assessment and A&D Waiver application.

If you were denied earlier in the year based on income, check whether the March 1 update changes your eligibility before assuming the denial is permanent.

Common Questions

If I was denied Indiana Medicaid for having slightly too much income, should I reapply?

Possibly — ABD/long-term care limits update January 1, but HIP and Hoosier Healthwise update separately on March 1. Reapplying after March 1 could change the outcome.

What is Indiana's HCBS waiver called?

The Aged and Disabled (A&D) Waiver, for seniors and disabled adults needing nursing-facility-level care at home.

How long is the penalty period for an improper asset transfer in Indiana?

A $100,000 uncompensated transfer produces roughly 11.8 months of ineligibility, based on Indiana's average nursing home cost.