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At Mattox & Wilson, we guide Southern Indiana families through one of the most complex and consequential areas of the law: qualifying for Medicaid to pay for long-term care while preserving as much of your life’s savings as possible for your spouse and your heirs. The rules governing Indiana Medicaid eligibility are detailed, they change regularly, and the cost of getting them wrong can be devastating. We have helped many families navigate this process, and we are here to help yours.
Nursing home care in Indiana now costs more than $9,000 per month for a private room. Assisted living facilities and in-home care carry their own significant price tags. Without a plan, those costs can exhaust decades of savings with alarming speed. Medicaid is the primary government program that will pay for long-term nursing home care, but qualifying for it requires meeting strict income and asset limits. The good news is that with careful, lawful planning, you may be able to qualify for Medicaid without first losing everything you have worked to accumulate.
If you or a loved one is facing a long-term care situation, do not wait. Call us today at 812.944.8005 to schedule a consultation with one of our Medicaid planning attorneys.
Medicaid is a joint federal and state program that provides healthcare coverage to people who meet certain income and asset requirements. In Indiana, the program is administered by the Indiana Family and Social Services Administration (FSSA). While the federal government sets broad rules, Indiana has its own specific eligibility standards, income limits, asset limits, and planning rules. This is why it is critical to work with an attorney who understands Indiana Medicaid law specifically.
Many people confuse Medicaid with Medicare. Medicare is a federal health insurance program available to anyone age 65 and older, regardless of income or assets. It covers hospital stays, physician services, and limited skilled nursing care, but it does not cover custodial nursing home care for any extended period. Most families find that Medicare covers very little of a long nursing home stay. Medicaid, by contrast, does cover long-term custodial nursing home care, but you must meet financial eligibility requirements to receive it.
To qualify for Indiana Medicaid coverage for long-term care services, including nursing home care, assisted living under certain waiver programs, and in-home care, you must generally meet the following basic requirements:
Meeting all of these requirements simultaneously is where families often run into difficulty. We help you understand where you stand and what steps are necessary to bring you into compliance with Indiana Medicaid rules.
For 2026, the monthly income limit for a single person applying for Medicaid long-term care coverage in Indiana is $2,982 per month. This figure is adjusted annually based on the federal poverty level.
For married applicants, the rules differ. Generally, only the applying spouse’s income is considered for eligibility purposes. The non-applying, or “community,” spouse is generally permitted to keep all of their own income.
If your income exceeds the monthly limit, you are not automatically disqualified. Indiana allows applicants who are over the income limit to use a Qualified Income Trust (QIT), also called a Miller Trust, to redirect excess income and still become eligible for benefits. We can help you establish a Miller Trust that complies with Indiana law and the requirements of the Indiana FSSA.
Questions about your income and Medicaid eligibility? Call us at 812.944.8005
For 2026, the countable asset limit for a single Medicaid applicant in Indiana is $2,000. If both spouses are applying for Medicaid coverage, the combined asset limit is $3,000.
When only one spouse is applying for Medicaid and the other spouse will continue living in the community (sometimes called the “community spouse”), the rules provide important protections. The community spouse may retain up to 50 percent of the couple’s combined countable assets, up to a maximum of $162,660 (the 2026 figure). This is called the Community Spouse Resource Allowance (CSRA). In addition, the community spouse may be entitled to a monthly income allowance to ensure they can maintain a reasonable standard of living.
Understanding what counts as a “countable” asset versus an “exempt” asset is one of the most important parts of Medicaid planning.
Not all of your assets count toward the Medicaid asset limit. Under Indiana law, the following assets may be classified as exempt, meaning they are generally not counted in your eligibility determination:
It is important to understand that exemption from the asset limit does not mean the asset is protected from Indiana’s Medicaid Estate Recovery Program (MERP) after death. The state can seek reimbursement from your estate for Medicaid benefits paid on your behalf. Proper planning can address estate recovery as well as eligibility.
One of the most important concepts in Medicaid planning is the five-year look-back period. When you apply for Medicaid long-term care benefits in Indiana, the FSSA will review all financial transactions you made in the five years prior to your application date. If you transferred assets for less than fair market value during that period, the state will assess a penalty period during which you will be ineligible for Medicaid benefits.
The length of the penalty period is calculated by dividing the total value of the disqualifying transfers by the average monthly cost of nursing home care in Indiana. This can result in a penalty period of months or even years, leaving you personally responsible for nursing home costs during that time.
This rule does not mean that gifting or asset transfers are never permitted. It means that such strategies must be carefully planned and executed within the framework of Indiana Medicaid rules. Transfers made more than five years before the application date generally fall outside the look-back window and do not trigger a penalty. Certain transfers are also exempt from the look-back rules, such as transfers to a spouse, transfers of a home to a caregiver child who has lived in the home for at least two years and provided care that delayed nursing home placement, or transfers to a blind or disabled child.
This is one of the strongest arguments for planning early, well before a crisis occurs.
[1] Medicaid Asset Allowances, Senior Planning Services, https://www.seniorplanning.com/medicaid-allowances/indiana#:~:text=Individual-,$2%2C000.00,$3%2C000.00*.
Do not let the look-back period catch you off guard. Call us at 812.944.8005 to begin planning now.
We work with clients at every stage of the planning process, from families who are thinking ahead years in advance to those already facing an immediate nursing home admission. The strategies available to you will depend on your specific financial picture, your family situation, and how much time you have. Here are some of the tools we use in Indiana Medicaid planning:
A Medicaid Asset Protection Trust (MAPT) is an irrevocable trust into which you transfer assets. Because you give up control over the assets placed in the trust, they are generally not counted toward your Medicaid asset limit after the five-year look-back period has passed. Assets transferred into a MAPT may still benefit your family members as beneficiaries. This strategy is most effective when implemented five or more years before you anticipate needing Medicaid.
A Qualified Income Trust, commonly called a Miller Trust, is required for Medicaid applicants whose monthly income exceeds the applicable limit. Indiana law requires that the excess income be deposited into the Miller Trust each month. The trust is used to pay the nursing facility’s patient pay amount and certain allowed expenses, with the remainder going toward the cost of care. We draft and establish Miller Trusts that comply with Indiana FSSA requirements.
In certain circumstances, converting a lump sum of assets into a Medicaid-compliant annuity can reduce your countable assets while still generating income. For married couples in particular, this strategy can allow the community spouse to receive a steady income stream while the nursing home spouse qualifies for Medicaid. These annuities must meet specific federal and Indiana requirements to avoid being treated as a disqualifying transfer.
Spending down assets does not have to mean simply paying the nursing home until your money runs out. There are lawful ways to spend countable assets on things of value that will improve your or your family’s situation. Examples include paying off a mortgage, making home improvements, purchasing exempt personal property, prepaying funeral and burial expenses, and paying for legal and professional fees. We help you identify appropriate spend-down options that comply with Indiana Medicaid rules.
Indiana Medicaid rules allow a parent to transfer their home to an adult child who lived in the home for at least two years immediately before the parent entered a nursing facility, and who provided care during that time that demonstrably delayed the parent’s need for nursing home placement. This transfer is exempt from the five-year look-back penalty. Documenting this exception properly is critical, and we guide families through the process of establishing and proving eligibility for the caregiver child exception.
One of the most common situations we handle is a married couple facing the reality that one spouse needs to enter a nursing home or assisted living facility. They may be able to afford private pay for a period of time, but they are worried about what will happen when the money runs out, and they are understandably concerned about the financial security of the spouse remaining at home.
Indiana Medicaid law provides important protections for the community spouse, sometimes called spousal impoverishment protections. These rules exist specifically to prevent the at-home spouse from being left financially destitute while the other spouse receives Medicaid-funded care. Under these rules:
With careful planning, it is often possible to preserve a substantial portion of a married couple’s assets and ensure that the community spouse can maintain a reasonable standard of living. We take time to review your complete financial picture and develop a strategy tailored to your situation.
Call us at 812.944.8005 to talk through your situation as a married couple facing long-term care planning.
If you are single, widowed, or divorced and need nursing home or long-term care, the asset limits are lower and the planning options may be somewhat more limited, but there are still meaningful steps we can take on your behalf. For a single individual, the countable asset limit is $2,000. With proper planning, however, it may be possible to preserve a portion of your assets for your heirs rather than spending every dollar on nursing home costs before Medicaid coverage begins.
As Medicaid planning lawyers with decades of experience, we work with you to take a full inventory of your assets and liabilities, identify which assets are exempt and which are countable, and develop a lawful plan to reduce countable assets. This may involve a combination of spend-down strategies, irrevocable trust planning, and gifting within the bounds of the look-back rules. Our goal is to help you qualify for Medicaid coverage as efficiently as possible while protecting as much of your estate as the law allows.
Crisis Medicaid planning refers to the situation where a loved one is already in a nursing home, or an admission is imminent, and the family has done little or no advance planning. Many families find themselves in exactly this position. A sudden fall, a stroke, a diagnosis of dementia; these events can require nursing home placement with very little warning.
Even in a crisis, planning can still make a significant difference. The options available to you are more limited than they would have been with years of advance notice, but there are still lawful strategies that can help you qualify for Medicaid sooner and preserve more of your estate. Crisis planning often involves a combination of rapid spend-down on appropriate items, establishment of a Miller Trust if needed, and careful documentation and application preparation.
We understand that families facing a loved one’s sudden need for nursing home care are under tremendous emotional and financial stress. We approach these situations with both urgency and compassion, working as efficiently as possible to help you get Medicaid benefits in place.
Facing an urgent long-term care situation? Call us now at 812.944.8005 to schedule a consultation with an experienced Indiana Medicaid planning attorney.
Many people do not realize that Medicaid can pay for care provided at home or in the community, not just in a nursing facility. Indiana offers several Home and Community-Based Services (HCBS) waiver programs that allow eligible individuals to receive care in their own homes, in assisted living facilities, or in other community settings while avoiding or delaying nursing home placement.
The primary waiver program for older adults in Indiana is the Indiana PathWays for Aging program (formerly known as the Aged and Disabled Waiver). This program provides services such as personal care assistance, adult day services, home-delivered meals, and other supports that allow individuals to remain in the community. Income and asset eligibility requirements are similar to those for nursing home Medicaid.
Medicaid waiver programs can be particularly beneficial for married couples where one spouse needs care. Rather than forcing a nursing home placement that separates the couple, a Medicaid waiver can fund in-home care that allows both spouses to remain together. We can help you determine whether a waiver program is a good fit for your situation and assist you through the eligibility and enrollment process.
Indiana participates in the federal Medicaid Estate Recovery Program (MERP). After a Medicaid recipient dies, the state has the right to seek reimbursement from the deceased person’s estate for Medicaid benefits paid on their behalf. This can affect not only probate assets but also, in some cases, assets that pass outside of probate.
Estate recovery most commonly affects the Medicaid recipient’s home. Because the home is generally an exempt asset for purposes of Medicaid eligibility, many families assume it is safe from the state. However, the state can file a claim against the home after the recipient’s death.
There are strategies to address estate recovery, including the use of irrevocable trusts, Transfer on Death Deeds, and other planning tools that can help protect your home and other assets from MERP claims. Our dedicated Medicaid planning lawyers can coordinate Medicaid planning with your broader estate plan to address both eligibility and estate recovery concerns.
Medicaid planning does not exist in isolation. It intersects with your estate plan in a number of important ways. An irrevocable Medicaid planning trust, for instance, has consequences for how your assets will pass to your heirs. Transfers of property for Medicaid purposes affect how that property will be titled and potentially how it will be taxed. And documents like Durable Powers of Attorney and Healthcare Representatives are critical tools for authorizing someone to make financial and medical decisions on your behalf if you become incapacitated before or during a Medicaid application.
We approach Medicaid planning as an integrated part of your complete elder law and estate planning picture. We review your existing estate planning documents, identify any gaps or conflicts with your Medicaid planning goals, and coordinate the strategies so that your plan is coherent and complete.
The most straightforward answer is: as early as possible. Because of the five-year look-back period, Medicaid planning strategies that involve transferring assets out of your estate are most effective when implemented well in advance. If you begin planning today and transfer assets into an irrevocable trust, those assets will be outside the look-back window in five years.
That said, planning is possible and worthwhile at every stage, including after a nursing home admission has already occurred. The earlier you start, however, the more options you have and the more of your estate you are likely to be able to protect.
We serve clients throughout Southern Indiana from our office in New Albany, including Floyd County, Clark County, Harrison County, Scott County, Jefferson County, and Washington County, as well as communities including Jeffersonville, Clarksville, Corydon, Madison, Salem, Scottsburg, and Greenville.
Contact Mattox & Wilson for Indiana Medicaid Planning
Call us today at 812.944.8005
We represent clients throughout Southern Indiana. To schedule a consultation with one of our experienced Medicaid planning attorneys, please call us at 812.944.8005. We look forward to learning about your situation and helping you develop a plan that protects your family.