Indiana Medicaid Eligibility: Income Limits, Asset Rules & How to Apply

IndIndiana Medicaid is administered by the Indiana Family and Social Services Administration (FSSA) and funded by federal and state dollars, providing health coverage to low-income Hoosiers including children, pregnant women, parents, seniors, and people with disabilities.

Indiana’s Medicaid program is defined above all else by the Healthy Indiana Plan (HIP) — the state’s distinctive approach to ACA Medicaid expansion that launched in 2015 and operates differently from traditional Medicaid in every other expansion state. HIP was the first expansion in the country to use a POWER account model, requiring participants to make monthly contributions into a health savings-style account as a condition of enhanced coverage. This consumer-directed approach — piloted under then-Governor Mike Pence — became a national template for conservative-state Medicaid expansion and is still in effect today.

HIP divides participants into HIP Plus (enhanced benefits, requires monthly POWER account contribution up to 2% of income) and HIP Basic (limited benefits, for those who can’t afford contributions, with copayments at point of service). Non-payment of contributions by HIP Plus enrollees above 100% FPL can result in disenrollment — a feature unique to Indiana among expansion states.

Beyond HIP, Indiana’s long-term care landscape includes the Aged and Disabled (A&D) Waiver for home-based care, a $15,000 Irrevocable Funeral Trust exemption matching Florida and Georgia, and Hoosier Healthwise covering children up to 252% FPL. This guide covers every major Indiana Medicaid program, 2026 income and asset limits, the 60-month look-back rule, and how to apply through the FSSA Benefits Portal. For a quick eligibility check, use our Medicaid Eligibility Calculator before applying.

Indiana Medicaid Programs

Institutional / Nursing Home Medicaid

An entitlement program with no waiting list — everyone who qualifies is guaranteed coverage. It funds care in nursing facilities, hospitals, and Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/IID). Applicants must demonstrate a Nursing Facility Level of Care (NFLOC). Indiana has a well-developed nursing home industry — Indianapolis, Fort Wayne, Evansville, and South Bend metro areas have substantial facility capacity, though rural Indiana counties in the southern and north-central regions may have fewer local options.

Aged and Disabled (A&D) Waiver — Home and Community Based Services

Indiana’s primary HCBS waiver for seniors and disabled individuals is the Aged and Disabled (A&D) Waiver, covering in-home personal care, adult day services, delivered meals, and other community-based supports enabling people to remain at home rather than entering a nursing facility. The A&D Waiver is a non-entitlement program with limited slots and waiting lists. Indiana’s manufacturing and agricultural workforce has created an older population concentrated in areas like the Calumet region, rural southern Indiana, and the Rust Belt communities of the northwest — areas with high waiver demand relative to available slots. Apply as early as possible. While waiting for A&D Waiver enrollment, many Hoosiers also qualify for food assistance — see our Indiana SNAP benefits page.

Regular Medicaid (Aged, Blind, and Disabled)

Covers elderly, blind, or disabled Hoosiers with lower income and assets, without requiring nursing-level medical need. No look-back period applies. Indiana also offers a medical spend-down pathway — if your income exceeds the $967/month limit, qualifying medical expenses can be deducted to reach eligibility. SSI recipients are categorically eligible. For seniors on Social Security who also need food assistance, see our guide on whether seniors on Social Security can get food stamps.

Hoosier Healthwise — Children and Pregnant Women

Hoosier Healthwise is Indiana’s Medicaid program for children and pregnant women. Children up to age 19 qualify at income limits up to 252% FPL ($3,294/month for a single-person household) — a generous threshold for a Midwestern state, matching Georgia’s under-6 extension and significantly above the standard 200% FPL used by many states. Pregnant women qualify separately at 213% FPL ($2,787/month), with coverage extending 12 months postpartum. No asset test applies. Families who qualify here may also be eligible for WIC — see Indiana WIC income guidelines or use our WIC Eligibility Calculator.

Healthy Indiana Plan (HIP) — Medicaid Expansion for Adults

The Healthy Indiana Plan (HIP) is Indiana’s ACA Medicaid expansion program, launched in February 2015. Unlike standard Medicaid expansion in most states, HIP uses a consumer-directed account model built around POWER accounts:

• HIP Plus: Enhanced benefits (vision, dental included) requiring monthly POWER account contributions of up to 2% of income. Enrollees who fail to make contributions and earn above 100% FPL may be disenrolled for 6 months.
• HIP Basic: More limited benefits for those who cannot afford HIP Plus contributions. Copayments apply at point of service. Enrollees earning below 100% FPL cannot be disenrolled for non-payment.

HIP covers adults aged 19–64 without dependent children earning up to 138% FPL ($1,799/month for a single person). No asset test applies. Indiana’s large manufacturing workforce — auto industry suppliers in central Indiana, steel workers in northwest Indiana’s Calumet region — relies meaningfully on HIP for coverage. Starting January 2027, federal work requirements will apply to HIP enrollees — Indiana has historically supported community engagement requirements and may be better positioned administratively than most states to implement federal work rules, having operated engagement components under HIP waivers previously.

General Eligibility Requirements

• Indiana Residency: You must currently reside in Indiana.
• Citizenship / Immigration Status: U.S. citizens, nationals, and qualifying immigrants — including permanent residents with 5+ years in the U.S., refugees, and asylees — are eligible. Undocumented immigrants are generally not eligible for full Medicaid, though emergency services may be covered.
• Income: Varies by program — see limits below.
• Assets: Limits apply for long-term care and aged/blind/disabled programs only.
• POWER Account Contributions: HIP Plus enrollees above 100% FPL must make monthly POWER account contributions as a condition of maintaining enhanced benefits.
• Medical / Functional Need: Nursing home Medicaid and the A&D Waiver require documented NFLOC.

2026 Income Limits for Indiana Medicaid

Indiana uses the standard 48-state FPL figures. Note the split thresholds: children (252% FPL) and pregnant women (213% FPL) qualify at different levels. Income limits below are expressed as monthly amounts.

Important Notes on Income

Nursing Home / A&D Waiver applicants above the income limit: If monthly income exceeds $2,901, a Qualified Income Trust (QIT) redirects excess income to establish eligibility. Indiana Medicaid must be named as the QIT beneficiary at the recipient’s death. Indiana’s Personal Needs Allowance for nursing home residents is $52/month — modestly above Alabama ($30) and Illinois ($30), and reflecting Indiana’s cost structure. HCBS participants living at home receive a higher personal income allowance.

HIP POWER Account contributions: HIP Plus enrollees above 100% FPL must contribute up to 2% of their monthly income. For a person earning $1,500/month, this is $30/month. Failure to maintain contributions can result in 6 months of disenrollment for those above 100% FPL — a unique financial risk not found in other states’ expansion programs.

Married couples, one spouse applying: Only the applicant’s income counts toward the $2,901 limit. The community spouse may retain income up to a Minimum Monthly Maintenance Needs Allowance (MMMNA) of $3,948/month, provided housing and utility costs exceed $793.13/month (effective July 1, 2025 through June 30, 2026).

Use our FPL Calculator to check where your household falls, or see our Indiana Medicaid income eligibility page for the full breakdown.

2026 Federal Poverty Level Reference (48 States & D.C.)

Asset Rules for Indiana Medicaid

Asset tests apply only to long-term care (Nursing Home / A&D Waiver) and Regular Medicaid for the aged, blind, and disabled. HIP adults, Hoosier Healthwise children, and pregnant women face no asset test.

Long-Term Care Medicaid (Nursing Home and A&D Waiver)

Countable asset limits:

• Single applicant: $2,000
• Married, both applying: $3,000 total
• Married, one applying: $2,000 for the applicant; up to $157,920 for the non-applicant spouse (Community Spouse Resource Allowance, or CSRA)

Home equity limit: $730,000. The primary home is exempt if the applicant or their spouse lives there or intends to return, provided equity stays under $730,000. Indiana’s real estate markets are generally moderate — most properties statewide are well under this cap. However, properties in Carmel, Zionsville, Fishers, and other affluent Indianapolis suburbs, as well as lakefront properties on Indiana’s northern lakes (Lake Wawasee, Lake Maxinkuckee, Syracuse Lake), can approach the threshold. Applicants in these markets should verify equity before applying.

Non-countable (exempt) assets include:

• Primary home (subject to the $730,000 equity cap)
• One vehicle
• Household goods and personal effects
• Irrevocable Funeral Trusts — up to $15,000 in Indiana, matching Florida and Georgia and among the highest caps in the country
• Medicaid Compliant Annuities
• Life insurance with a face value of $1,500 or less

Indiana’s 60-Month Look-Back Rule

Indiana enforces a standard 60-month (5-year) look-back period for Nursing Home Medicaid and the A&D Waiver. All asset transfers within that window are reviewed. Gifts or transfers below fair market value — including transfers of Indiana lakefront property or farmland to family members — can trigger a penalty period of Medicaid ineligibility.

Indiana’s significant agricultural land base — particularly in northern and central Indiana — creates a specific look-back risk: farm transfers to children or co-ownership arrangements below market value within the 5-year window can result in substantial penalty periods. Farm operators approaching long-term care age should consult a Certified Medicaid Planner well in advance to structure agricultural property transfers correctly. There is no look-back period for Regular Medicaid.

Indiana’s Medicaid Estate Recovery Program

After an Indiana Medicaid long-term care beneficiary passes away, Indiana’s Estate Recovery Program seeks reimbursement from the estate. The primary home is the most common recovery target. Indiana farmland — which may have been in families for generations — can be subject to estate recovery if passed through the probate estate without planning. Consult a Certified Medicaid Planner for Indiana-specific protective strategies.

Regular Medicaid (Aged, Blind, and Disabled)

Asset limit is $2,000 for individuals and $3,000 for couples. No home equity cap and no look-back period apply. Indiana’s medical spend-down pathway is also available here — deduct qualifying medical expenses from countable income to reach the $967 eligibility threshold.

Medical and Functional Requirements

For Nursing Home Medicaid and the A&D Waiver, applicants must demonstrate a Nursing Facility Level of Care (NFLOC) through a formal evaluation of:

• Activities of Daily Living (ADLs): bathing, dressing, eating, toileting, mobility
• Instrumental Activities of Daily Living (IADLs): cooking, shopping, managing finances, taking medications
• Cognitive or behavioral issues — including Alzheimer’s disease and dementia. A diagnosis alone does not satisfy NFLOC; documented functional limitations are required.

For Regular Medicaid covering the aged, blind, or disabled, applicants must document disability or blindness per Social Security Administration (SSA) criteria. NFLOC is not required for this program.

What Federal Policy Changes Mean for Indiana Medicaid

The One Big Beautiful Bill Act, signed July 4, 2025, introduces Medicaid changes phasing in through 2028. Indiana’s HIP structure gives the state specific context for navigating these changes.

• Work Requirements (Starting January 2027): Federal work requirements will apply to HIP adults aged 19–64. Indiana has historically supported community engagement requirements and operated them under previous HIP waiver extensions — giving Indiana’s FSSA more existing infrastructure than most states. Indiana’s manufacturing and agricultural workforce — many of whom work variable hours — will need to document qualifying activity, particularly during layoffs or seasonal gaps. Seniors, disabled individuals, pregnant women, and children are exempt.
• Interaction with HIP POWER Accounts: The combination of federal work requirements and HIP Plus payment requirements creates a dual administrative burden for Indiana expansion adults — they must simultaneously document work activity AND maintain POWER account contributions. This is a complexity unique to Indiana.
• Reduced Retroactive Coverage (Starting January 2027): Coverage will only extend back 2 months from application, down from 90 days. Indiana residents who delay applying after a health event will face more uncovered medical debt.
• More Frequent Eligibility Renewals (Starting December 2026): Renewals every 6 months instead of annually. HIP enrollees already manage POWER account contribution tracking — adding semi-annual full eligibility renewals increases the administrative load further.
• New Out-of-Pocket Costs (Starting October 2028): Non-exempt beneficiaries may owe up to $35 per specialist visit. Primary care and preventive services remain free.
• Funding Cuts: Projected federal Medicaid cuts of approximately $1 trillion over 10 years may affect Indiana’s rural hospitals — particularly in southern Indiana and the Calumet region — where Medicaid and HIP together represent a large share of patient revenue.

Indiana has also enacted a SNAP junk food restriction — see our guide on the Indiana SNAP junk food ban. For the broader federal SNAP picture, see our article on Big Beautiful Bill SNAP changes.

Options If Your Income or Assets Exceed the Limit

Qualified Income Trusts (QITs): For Nursing Home Medicaid and the A&D Waiver, a QIT redirects excess monthly income to bring you under the $2,901 threshold. The trust is irrevocable and must name Indiana Medicaid as the beneficiary. Must be established by an attorney or Certified Medicaid Planner before application.

Irrevocable Funeral Trusts (IFTs): Indiana allows up to $15,000 in pre-paid funeral and burial expenses in an IFT — matching Florida and Georgia at the high end of the national range. A valuable planning tool for applicants slightly above the $2,000 asset limit.

Medical Spend-Down (Regular Medicaid): If income exceeds $967/month, deduct qualifying medical expenses to reach the eligibility threshold. Once net income reaches $967, Medicaid covers remaining costs for that month.

Asset Spend-Down: Converting countable assets into exempt ones — home improvements, vehicle purchase, paying off debt — can reduce countable assets below $2,000. Agricultural landowners should be especially careful to structure transfers correctly to avoid look-back violations.

Medicaid Compliant Annuities: In spousal situations, converting excess assets into a compliant annuity can protect assets while generating income for the community spouse.

Certified Medicaid Planners: Indiana’s farmland look-back complexity, the $15,000 IFT cap, and the dual burden of HIP POWER account contributions plus 2027 work requirements make professional planning especially valuable for Hoosiers nearing long-term care age or managing HIP enrollment.

While addressing a Medicaid income or asset issue, check whether SNAP food assistance is available in parallel — see SNAP income limits for Indiana.

How to Apply for Indiana Medicaid

Indiana centralizes most benefit applications through the FSSA Benefits Portal, which handles Medicaid, SNAP, and other FSSA programs together.

Application Methods

• Online via FSSA Benefits Portal (Recommended): Apply at fssabenefits.in.gov. Before applying, use our Medicaid Eligibility Calculator to confirm which program applies. For step-by-step guidance, see our Indiana Medicaid application guide.
• Phone: Call the FSSA Customer Service Center at 1-800-403-0864 for assistance.
• In-Person or Mail: Download a paper application from in.gov/fssa and submit to a local FSSA Division of Family Resources office. Indiana has DFR offices in all 92 counties — accessible even in rural southern Indiana and the northern lake communities.
• Long-Term Care Support: Contact the Indiana Division on Aging or a local Area Agency on Aging at 1-800-986-3505 for help with A&D Waiver applications and NFLOC assessment coordination.

Documents You’ll Need

• Proof of Indiana residency
• Proof of income (pay stubs, Social Security award letters, tax returns)
• Proof of assets (bank statements, investment accounts, property and farmland records) — for long-term care applications
• Medical expense documentation — for medical spend-down applications
• Proof of citizenship or qualifying immigration status
• Medical records documenting functional limitations (for Nursing Home / A&D Waiver applications)
• Disability documentation per SSA criteria (for Regular Medicaid aged/blind/disabled)

Processing Times

• Standard applications: Up to 45 days
• Disability-based applications: Up to 90 days
• Pregnant women: May qualify for presumptive eligibility for outpatient care while the full application processes

Starting January 2027, retroactive coverage drops to 2 months before application. Apply promptly after any health event that generates significant medical bills.

Indiana Medicaid and Other Benefit Programs

• SNAP (Food Stamps): Many Indiana Medicaid and HIP recipients also qualify for SNAP. The FSSA portal handles both applications. See our Indiana SNAP page or Indiana SNAP application guide. Note Indiana has enacted a SNAP junk food ban — see our Indiana SNAP junk food ban guide for what items are now restricted. If you already receive benefits, see how to check your SNAP balance in Indiana.
• WIC: Pregnant women and young children qualifying for Hoosier Healthwise typically also qualify for WIC. See Indiana WIC income guidelines.
• EBT Discounts: Indiana EBT cardholders may access discounts at certain retailers. See EBT discounts available in Indiana.
• Medicare: Many Indiana seniors use both Medicare and Medicaid simultaneously. Understanding the difference between Medicare and Medicaid is essential for long-term care planning, particularly given Indiana’s significant nursing home industry.
• SNAP Work Requirements: HIP expansion adults who also receive SNAP should know both programs will have federal work requirements starting in 2027. Read our guide on SNAP work requirements for details on exemptions.

Frequently Asked Questions About Indiana Medicaid

What is the Healthy Indiana Plan (HIP) and how does it differ from regular Medicaid?

HIP is Indiana’s ACA Medicaid expansion program for adults aged 19–64 earning up to 138% FPL. Unlike standard Medicaid, HIP uses POWER accounts — a health savings-style mechanism where enrollees make monthly contributions in exchange for enhanced benefits (HIP Plus). Those who can’t afford contributions default to HIP Basic with more limited coverage and copayments. Non-payment by those above 100% FPL can result in temporary disenrollment — a risk that doesn’t exist in standard Medicaid expansion states.

What is a POWER account in HIP Indiana?

A POWER account is a health spending account funded by both the enrollee and Indiana Medicaid. HIP Plus enrollees contribute up to 2% of their monthly income — for example, $30/month on a $1,500/month income. These funds pay for medical services first; Medicaid covers costs beyond the account balance. HIP Plus provides more comprehensive benefits, including dental and vision, that HIP Basic does not. Maintaining contributions is required to keep HIP Plus status for those above 100% FPL.

What happens if I don’t pay my HIP Plus contribution?

If you earn above 100% FPL and miss HIP Plus contributions for a set period, Indiana may disenroll you from HIP for up to 6 months. You may be moved to HIP Basic with more limited coverage and copayments, or temporarily lose coverage. Those earning at or below 100% FPL cannot be disenrolled for non-payment. Contact FSSA at 1-800-403-0864 if you’re having difficulty making contributions — there may be hardship options available.

How do I apply for Medicaid or HIP in Indiana?

Apply online at fssabenefits.in.gov, by phone at 1-800-403-0864, or in person at any of Indiana’s 92-county DFR offices. Our Indiana Medicaid application guide walks through each step. For a national overview, see where to apply for Medicaid.

Does Indiana Medicaid cover farmland as a countable asset?

Yes — farmland that is not the primary home is generally a countable asset for long-term care Medicaid purposes. However, farmland actively used in a business operation by the applicant may have different treatment depending on circumstances. Farmland transferred to children within 5 years of applying can also trigger look-back penalties. Indiana’s significant agricultural land base makes this one of the most common planning questions for rural Hoosiers facing long-term care needs. Consult a Certified Medicaid Planner experienced with Indiana farm asset rules well before a care need arises.

Can I get Medicaid in Indiana if I’m between jobs?

Yes — if you’re between jobs and your income (including unemployment benefits) is at or below 138% FPL ($1,799/month for one person), you likely qualify for HIP. Unemployment income counts as income for Medicaid purposes. Apply as soon as a coverage gap begins. Also see our guide on whether you can get food stamps while on unemployment — SNAP eligibility often applies simultaneously.

What is the Indiana SNAP junk food ban and does it affect Medicaid?

The Indiana SNAP junk food ban restricts what EBT cards can purchase — it does not affect Medicaid health coverage. The two programs are separate, but many Indiana Medicaid and HIP recipients also receive SNAP benefits. Items like candy and sugary drinks that were previously SNAP-eligible are now restricted at checkout in Indiana.

What does the A&D Waiver cover in Indiana?

The Aged and Disabled (A&D) Waiver covers in-home personal care, adult day health services, delivered meals, respite care, and other supports for seniors and disabled Hoosiers who meet nursing facility level of care criteria but prefer to remain at home. It has limited slots and a waiting list — apply early. The A&D Waiver allows recipients to keep more of their income than nursing home Medicaid’s $52/month personal needs allowance, making it financially preferable for many applicants.

Does Indiana have a Medicaid look-back period?

Yes — Indiana enforces a 60-month (5-year) look-back period for nursing home Medicaid and the A&D Waiver. Asset transfers below fair market value — including gifts of farmland, cash, or real estate to children — within that window can trigger penalty periods of Medicaid ineligibility. There is no look-back for Regular Medicaid (aged/blind/disabled).

This guide reflects 2026 federal and Indiana Family and Social Services Administration guidelines. Rules change — verify current requirements with FSSA at in.gov/fssa or by calling 1-800-403-0864 before making eligibility decisions.