In Indiana, Medicaid eligibility depends on the specific program, but seniors seeking help with long-term care generally must meet financial requirements as well as medical or functional eligibility requirements. Income, countable assets, marital status, where care is provided, and previous transfers of property can all affect whether someone qualifies.
At Dillman & Owen Estate and Elder Law, our Indiana Medicaid planning lawyers help families understand these rules as part of the bigger picture of paying for care, protecting assets, and preparing for changing health needs.
“Families often come to us believing they either have too much money for Medicaid or that they have to spend everything before they can get help. Neither assumption tells the whole story. The important thing is understanding the rules before making financial decisions that may be difficult to undo.”
— Lisa Dillman, Managing Partner
So, what actually determines whether you or a loved one qualifies? Here are some of the most important questions to consider.
What Are the Income Requirements for Indiana Medicaid?
There is no single Medicaid income limit that applies to everyone.
For older adults, people with disabilities, and individuals who need institutional or certain home- and community-based services, Indiana applies different income rules depending on the Medicaid program involved. For 2026, Indiana's eligibility guidance states that some institutionalized or waiver-eligible individuals may qualify with monthly income up to $2,982, although additional rules may apply.
Having income above a basic limit also does not necessarily mean you have no options. An Indiana Medicaid planning lawyer can review the type and source of your income and determine which rules apply to your circumstances.
How Much Can You Have in Assets and Still Qualify?
Indiana generally applies a $2,000 countable asset limit for a single applicant and a $3,000 limit for a married couple under its aged, blind, and disabled Medicaid eligibility rules.
But not everything you own is necessarily counted.
Certain assets may be exempt, including a primary residence under qualifying circumstances, one vehicle, and burial spaces. Other rules can apply to retirement accounts, trusts, insurance policies, jointly owned property, and other resources. That is why Medicaid planning involves much more than simply looking at a bank balance.
What Happens if One Spouse Needs Nursing Home Care?
Married couples have additional protections. Indiana's spousal impoverishment rules are designed to prevent the spouse remaining at home from having to become financially impoverished simply because the other spouse needs long-term care.
As of July 2026, Indiana permits a community spouse to retain a protected share of the couple's non-exempt assets, subject to minimum and maximum amounts established under the Medicaid rules. This makes Medicaid planning for married couples very different from planning for a single applicant.
Do You Have to Sell Your Home to Get Medicaid?
Not necessarily. A primary residence may be excluded from the Medicaid asset calculation in certain circumstances. However, home ownership can still raise important questions involving eligibility, transfers, a spouse who continues living in the home, and Medicaid estate recovery.
Before selling, gifting, transferring, or changing ownership of a home, it is important to understand how that decision could affect Medicaid.
Does Medicaid Look at Gifts or Asset Transfers?
Yes. Giving assets away shortly before applying for long-term care Medicaid can create serious problems.
Medicaid rules examine certain transfers made before an application. A well-intentioned gift to a child or transfer of property can potentially affect eligibility.
This is one reason families should seek advice before attempting to “spend down” or move assets on their own.
Do You Have to Spend Everything Before Qualifying?
No. Medicaid planning is not simply about exhausting everything you have accumulated.
Depending on your circumstances, lawful planning strategies may help protect a spouse, preserve certain assets, address long-term care expenses, and position an applicant for benefits.
The right strategy depends heavily on timing, family circumstances, assets, and care needs.
Plan for Medicaid Before a Crisis With Our Estate and Elder Law Attorneys
You do not have to wait until someone enters a nursing home to start planning.
Dillman & Owen Estate and Elder Law takes a holistic approach through Medicaid and Life Care Planning, considering the legal, financial, and health care issues that often overlap as someone ages.
If you are wondering whether you or a loved one may qualify for Medicaid, schedule a consultation with our Indiana Medicaid planning lawyers. We can review your circumstances, explain your options, and help you prepare for the care ahead.
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