Long-Term Care Funding in Indiana
Indiana takes a different route than a lot of states when it comes to funding long-term care. Because it's an income-cap state, a nursing-home or waiver applicant whose income runs over the monthly ceiling can't just spend down the excess — they need a Qualified Income Trust, commonly called a Miller Trust, to become eligible at all.
Indiana also lets homeowners record a transfer-on-death deed, but that convenience comes with a catch: the state's Medicaid estate-recovery definition reaches well beyond the probate estate, pulling in certain nonprobate transfers too. That combination — a hard income cap plus expanded recovery — makes title and trust planning unusually important here, and it's exactly what this cluster of pages is built to walk through.
Why Indiana is different
- A hard income cap, not a spend-down. Indiana's 2026 institutional and waiver income cap sits at $2,982 per month; anyone above that figure needs a Qualified Income Trust (Miller Trust) rather than a conventional medically needy spend-down.
- PathWays for Aging replaced the old waiver system. Indiana PathWays for Aging is now the statewide managed long-term-services-and-supports program for Medicaid members age 60 and older, covering both nursing-facility care and home- and community-based services.
- Transfer-on-death deeds don't dodge recovery. Indiana authorizes a recorded TOD deed for real property, but the state's statutory definition of "estate" for Medicaid recovery purposes includes certain survivorship interests and nonprobate transfers — so a TOD deed is a probate-avoidance tool, not automatically a recovery shield.
- A documented 90-day hardship deadline. Indiana's undue-hardship waiver process for estate recovery comes with a specific 90-day application deadline, which families need to track closely after a death.
- An active, open Partnership program. Indiana's Long Term Care Insurance Program is a live partnership between the state and private insurers — both traditional and Partnership policies are sold here, and the state itself doesn't sell the insurance.
Indiana at a glance
Which situation matches yours?
| If this is your situation | Start here |
|---|---|
| Care Needed NowA hospital discharge is being planned, a facility decision is imminent, or home care has already started. | Indiana Medicaid Look-Back PeriodIndiana VA Aid & Attendance |
| Care Within 1-3 YearsMemory changes, a recent fall, or a new diagnosis have made the timeline real, but care isn't needed today. | Indiana VA Aid & AttendanceIndiana Long-Term Care Planning |
| Planning AheadNo diagnosis, no crisis, no urgency — just the recognition that long-term care is a when, not an if, for most people eventually. | Indiana Long-Term Care InsuranceIndiana Long-Term Care Planning |
| Veteran (or surviving spouse) of wartime serviceAdds a federal pension benefit on top of whatever the Situation and State rows point to. | Indiana VA Aid & Attendance |
| Owns significant home equityThe home is usually Medicaid-exempt during life but affects estate recovery and private-pay runway. | Indiana Transfer-on-Death DeedIndiana Medicaid Long-Term Care |
| Already has LTC insurance or a hybrid life/LTC policy in forceThe existing policy is usually the first dollar spent; other pillars become supplemental once benefits are exhausted or if a gap remains. | Indiana Long-Term Care InsuranceIndiana Medicaid Long-Term Care |
The 10 funding pillars in Indiana
Every pillar below has its own dedicated Indiana page with the current rules, dollar figures, and what to do next.
Indiana Medicaid Long-Term Care
How FSSA administers Indiana Medicaid long-term services through PathWays for Aging, nursing facilities, and HCBS waivers.
Financial EligibilityIndiana Medicaid Asset Limits
Indiana's 2026 resource limits, income cap, home-equity bar, and community-spouse protections for long-term-care Medicaid.
Look-Back & PenaltiesIndiana Medicaid Look-Back Period
Indiana's five-year transfer review and the need to verify the currently published facility-rate divisor before calculating a penalty.
Asset Protection ToolIndiana Transfer-on-Death Deed
Indiana authorizes recorded transfer-on-death deeds, but nonprobate property remains within the state's broad Medicaid estate-recovery definition.
Estate RecoveryIndiana Medicaid Estate Recovery
Indiana's estate definition extends beyond probate and its undue-hardship rule has a documented 90-day application deadline.
Nursing Home CoverageIndiana Nursing Home Medicaid
Indiana nursing-facility Medicaid uses a $52 personal-needs allowance and requires PASRR plus a qualifying level-of-care determination.
Home & Community CareIndiana Home Care Medicaid
PathWays for Aging supplies managed HCBS for people 60 and older, while federally capped waiver capacity can produce a waiting list.
Planning AheadIndiana Long-Term Care Planning
Indiana planning combines a hard income cap, QIT administration, a five-year transfer review, and title planning under expanded recovery.
VA BenefitsIndiana VA Aid & Attendance
Indiana veterans can assess VA pension add-ons, the Indiana Veterans' Home, state property-tax relief, and Indiana Medicaid treatment together.
LTC InsuranceIndiana Long-Term Care Insurance (*)
Indiana's active Partnership program offers qualifying policies and Medicaid asset protection features through private insurers.
Participates in the State Long-Term Care Partnership Program.
See what LTC insurance could mean for your Indiana plan
A policy in place before care is needed can change every one of these pillars in your favor. Get a free, no-obligation quote.
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