Indiana Medicaid Nursing Home Coverage
Indiana Medicaid (PathWays for Aging) pays for nursing home care for income-eligible Indiana seniors. This guide covers eligibility rules, income and asset limits, the application process, required documents, and important rules families need to understand before applying.
Eligibility at a Glance
Income Limit
$2,742/mo
300% of SSI · Individual
Asset Limit
$2,000
Countable assets · Individual
Look-Back Period
5 Years
Asset transfer review
Spousal Assets Protected
$154,140
Community Spouse Resource Allowance
Spousal Income Protected
$3,853/mo
Min. Monthly Maintenance Allowance
Avg. Nursing Home Cost
$7,200/mo
Medicaid rate: ~$200/day
Indiana Nursing Home Medicaid Income Limit
300% of the SSI Federal Benefit Rate ($2,742/month for individuals in 2026). Indiana uses this income limit for nursing facility Medicaid. Indiana also has a spend-down pathway under the Medically Needy program.
Indiana has a Medically Needy spend-down pathway — seniors above the income limit may still qualify by spending down excess income on medical expenses. Consult a Indiana elder law attorney to determine if this applies to your situation.
Indiana Nursing Home Medicaid Asset Limit
Countable asset limit is $2,000 for an individual. Exempt assets include: primary residence (if intent to return or qualified person lives there), one vehicle up to $12,500 in value, burial fund up to $1,500, and personal property. Indiana has a Qualified Income Trust (Miller Trust) option for those over the income limit.
Indiana 5-Year Look-Back Rule
Indiana Medicaid reviews all asset transfers made within 5 years (60 months) of the application date. Transfers for less than fair market value during this period may result in a penalty period during which Medicaid will not pay for nursing home care. Consult a Indiana elder law attorney before transferring any assets.
Important Indiana Nursing Home Medicaid Rules
Qualified Income Trust (Miller Trust) for High-Income Applicants
Indiana seniors whose income exceeds $2,742/month can qualify for Medicaid nursing home coverage by establishing a Qualified Income Trust (also called a Miller Trust or QIT). All income above the limit is deposited into the trust monthly. The trust pays the nursing home patient responsibility and Medicaid covers the remainder. An elder law attorney must set up the trust properly.
PathWays for Aging Program
Launched in 2024, Indiana's PathWays for Aging program is a new Medicaid managed care program for dual-eligible seniors (Medicare + Medicaid) that integrates long-term care coordination. Nursing home care is covered under PathWays for Aging for eligible participants. The program aims to support seniors staying home longer through care coordination.
Personal Needs Allowance
Indiana Medicaid nursing home residents keep $60/month as a Personal Needs Allowance. All other income above this amount is paid to the nursing home as the Patient Pay Amount (PPA). Medicaid pays the difference between the PPA and the facility's approved Medicaid rate.
Medicaid Estate Recovery
Indiana participates in the Medicaid Estate Recovery Program. After the death of a Medicaid nursing home recipient, the Indiana FSSA may file claims against the estate for Medicaid costs paid for nursing home, hospital, and prescription drug services received at age 55 or older. A surviving spouse delays recovery. Consult an Indiana elder law attorney for planning options.
How to Apply for Indiana Nursing Home Medicaid
Indiana Family and Social Services Administration (FSSA)
Phone: 800-403-0864 · Website: in.gov/fssa/medicaid
- 1Apply at the Indiana FSSA Division of Family Resources — apply online at in.gov/fssa or call 800-403-0864
- 2Indiana uses the PathWays for Aging program (launched 2024) for dual-eligible and Medicaid-only long-term care
- 3A clinical Level of Care determination is required — completed by a registered nurse through the FSSA
- 4Submit documentation of income, assets (5-year bank statements), and identification
- 5Processing typically takes 45–90 days. Many Indiana nursing homes accept 'Medicaid pending' admissions.
- 6For seniors above the income limit ($2,742/month), a Qualified Income Trust (Miller Trust) may be needed
Documents Required for Indiana Nursing Home Medicaid
Gather these documents before starting your application. Missing documents are the #1 cause of application delays.
- Social Security card and Medicare card
- Birth certificate
- Proof of Indiana residency
- Social Security award letter and all other income verification
- Bank statements for 5 years (60 months)
- Life insurance statements (if applicable)
- Real property documentation (deed, tax records)
- Vehicle title and documentation
- Marriage certificate (if married)
- Trust documents (if any trusts exist)
* Gather 5 full years (60 months) of bank statements for ALL accounts. This is the single most common documentation gap in Medicaid nursing home applications.
Indiana Nursing Home Medicaid by the Numbers
555
Licensed Nursing Homes
48,000
Medicaid Beds
72%
Medicaid Bed %
$7,200
Avg Monthly Cost
Sources: CMS, Indiana Family and Social Services Administration (FSSA), 2026 data.
Is There a Waitlist for Indiana Nursing Home Medicaid?
Indiana does not have a statewide nursing facility Medicaid waitlist. However, Indiana's HCBS waivers (Aged & Disabled Waiver) for home and community-based care do have significant waitlists — sometimes 2+ years. If nursing home care is needed immediately, the NF program typically has faster access.
Find Medicaid-Accepting Nursing Homes in Indiana
Our care advisors can identify nursing homes in Indiana with open Medicaid beds and help you start the application process — no phone call required.
Indiana Nursing Home Medicaid FAQs
Does Indiana Medicaid cover nursing home care?▾
Yes — Indiana Medicaid covers skilled nursing facility care for eligible seniors. The standard income limit is $2,742/month (300% of SSI) and the asset limit is $2,000. Seniors above the income limit may qualify using a Qualified Income Trust (Miller Trust). Apply through the Indiana FSSA at 800-403-0864.
What is Indiana PathWays for Aging?▾
PathWays for Aging is Indiana's managed long-term care program launched in 2024 for dual-eligible seniors (those eligible for both Medicare and Medicaid). It integrates care coordination and covers nursing home care, home care, and community services. Dual-eligible Indiana seniors are automatically enrolled in PathWays for Aging.
What is the average cost of nursing home care in Indiana?▾
The average cost of nursing home care in Indiana is approximately $7,200/month ($240/day) for a semi-private room in 2026 — near the national average. Indiana's costs vary from about $6,500/month in rural areas to $8,500/month in Indianapolis and Fort Wayne metro areas.
How long does it take to get Indiana Medicaid nursing home approval?▾
Indiana Medicaid nursing home applications typically take 45–90 days to process. Most Indiana nursing homes accept 'Medicaid pending' residents who are admitted while the application is reviewed. If approved, Medicaid coverage typically backdates to the application date.
What is a Qualified Income Trust (Miller Trust) in Indiana?▾
A Qualified Income Trust (QIT or Miller Trust) allows Indiana seniors whose income exceeds $2,742/month to still qualify for Medicaid nursing home coverage. Each month, excess income is deposited into a trust account, which then pays the nursing home patient responsibility. The trust must be properly drafted by an elder law attorney and approved by Indiana FSSA.
Is there a waitlist for Indiana Medicaid nursing home coverage?▾
No — Indiana does not have a statewide waitlist for nursing facility Medicaid. Nursing homes accept Medicaid patients on a space-available basis. However, Indiana's Aged & Disabled (A&D) Medicaid waiver for home and community-based care does have significant wait times (often 12–24+ months). If nursing home care is the immediate need, it is generally accessible without a long wait.
Related Indiana Medicaid Guides
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