Dementia Care in Indiana: Help, Medicaid & Respite

An estimated 121,300 Hoosiers age 65 and older were living with clinical Alzheimer's dementia in 2020, or 10.9% of that age group.1 That is a modeled estimate, not a count of diagnoses, from Table 5 of the Alzheimer's Association's 2026 Alzheimer's Disease Facts and Figures. Behind those numbers are Indiana families doing the day-to-day work at home, unpaid.

Dementia caregiving is its own kind of hard: the long arc, the behavioral changes, the safety worries, the grief that starts before any loss. This guide maps the Indiana-specific help available in 2026, from the free 24/7 helpline to Medicaid in-home care and respite to the programs that can pay you for the care you already provide.

You do not have to navigate this alone, and you do not have to fund all of it from your savings.

Where to start with dementia care in Indiana

When a diagnosis lands, or when caregiving starts to outpace what you can manage alone, two contacts open most doors in Indiana. Make these calls first; everything else can wait until you have caught your breath.

Indiana dementia caregiving, by the numbers

Table 5 of the Alzheimer's Association's 2026 Alzheimer's Disease Facts and Figures estimates that 121,300 Indiana adults age 65 and older (10.9% of that age group) had clinical Alzheimer's dementia in 2020, the year Table 5 reports. It is a modeled estimate derived from age, sex and race distributions of state and county populations. PathWays for Aging, the FSSA Medicaid managed care program, launched July 1, 2024 for more than 123,000 eligible Hoosiers aged 60 and over who receive Medicaid (or Medicaid and Medicare) benefits, and each qualifying member has a care coordinator and services coordinator.1

If the work feels overwhelming, that is not a personal failing. It is the reality of a condition that demands more, for longer, than almost any other.

Who pays for dementia care in Indiana

Indiana dementia families draw on four separate payers, each with its own rules: Indiana Medicaid (PathWays for Aging), the aging network (Area Agencies on Aging), the VA (for veterans), and Medicare. The skill is stacking them, and knowing what bridges care while you wait.

Indiana Medicaid (PathWays for Aging)

Indiana Medicaid offers home- and community-based services (HCBS) for people who prefer to receive care and support at home rather than in a facility, and it runs several Medicaid waiver programs; PathWays for Aging is among the programs the state lists for older Hoosiers. A family's starting point is the INconnect Alliance, Indiana's network of 15 Area Agencies on Aging and Aging and Disability Resource Centers.3

PathWays is the Indiana Family and Social Services Administration (FSSA) Medicaid managed care program for Hoosiers aged 60 and over who receive Medicaid. It does not change or expand Medicaid benefits, and HCBS do not come with enrollment: only some members qualify for the PathWays HCBS waiver.1 That waiver serves Hoosiers who need nursing facility level of care, requires a level-of-care assessment plus functional and Medicaid eligibility determinations, and has a designated number of slots. Families almost always ask whether they can be paid for this care, and PathWays changed that rule the day it launched: since July 1, 2024, a legally responsible individual, such as a spouse, may no longer provide Attendant Care. Two routes remain open: Structured Family Caregiving, or Attendant Care from a caregiver who is not a legally responsible individual.1

What if there's a waitlist, or your income is too high?

The PathWays HCBS waiver has a designated number of slots; in its first waiver year, July 1, 2024 through June 30, 2025, a slot could be used by only one person. FSSA also established a waiting list for the former Aged and Disabled Waiver. Functional eligibility and Medicaid eligibility must be determined as well.1 Neither a wait nor a denial is the end of the road:

• While you wait or apply, look to the National Family Caregiver Support Program, which funds respite care, individual counseling, support groups and caregiver training, plus help gaining access to services. Call the INconnect Alliance at 1-800-713-9023 to ask what your Area Agency on Aging offers.2
• If you are over the income or asset limit, ask an elder law attorney about Medicaid-planning options before spending down your savings on care. Dementia care in a memory-care setting can run several thousand dollars a month out of pocket, so planning early matters.
• If an application is denied, you have the right to appeal, and the denial notice explains the deadline. Legal-aid programs can help you understand the reason and gather what the reviewer needs.

For what private-pay memory care looks like and how to weigh it, see memory care in Indiana.

Getting paid to care for a loved one with dementia

Many Indiana dementia caregivers can be paid for the care they provide, but the route matters, and one route closed in 2024. Since July 1, 2024, a legally responsible individual (a spouse, for example) may not provide Attendant Care under PathWays for Aging. What remains is a choice of two: Structured Family Caregiving, or Attendant Care from a caregiver who is not a legally responsible individual. Veterans' families have separate VA pathways, below. Before you plan around any of it, confirm with the member's PathWays health plan which route fits your household; the pathways, who can be hired, and the pay are covered in the Indiana paid family caregiver guide.1

VA benefits (for veterans)

If the person you care for is a veteran enrolled in VA health care, two VA pathways can help pay for dementia care. The Program of Comprehensive Assistance for Family Caregivers (PCAFC) pays a monthly stipend, which the VA has described as a nontaxable benefit, to the veteran's approved Primary Family Caregiver, who can be a spouse or adult child, when the veteran meets all of the VA's requirements. The VA's first screen asks for a disability rating of 70% or higher, a military discharge or date of medical discharge, a need for at least six months of continuous, in-person personal care, and VA health care enrollment; the VA then assesses further conditions during a joint application, and the caregiver must enroll in direct deposit through the VA customer engagement portal before any stipend is paid. The stipend is not a flat national figure: it is tied to the federal GS-4 pay scale for the area where the veteran lives, so the amount varies by locality, and PCAFC also provides caregiver training and at least 30 days of respite a year. Separately, VA Aid and Attendance adds monthly payments to a VA pension, and a veteran or survivor who gets a VA pension may be eligible if they meet at least one of the VA's listed needs, such as needing another person's help with daily activities like bathing, feeding, and dressing. Call the VA Caregiver Support Line at 1-855-260-3274 to start.4 The VA pension itself is for wartime veterans who meet age-or-disability requirements and income and net-worth limits.5

Medicare

Medicare covers dementia-related doctor visits and, when a patient shows signs of cognitive impairment, a separate cognitive assessment and care-plan visit (billed as CPT 99483); after the Part B deductible, the patient pays 20% of the approved amount. It also covers part-time skilled home health and hospice when a person qualifies. Medicare does not pay for long-term custodial care (ongoing non-medical help with bathing, dressing, and toileting) or a family caregiver's time; a person who needs that care may be eligible for it through Medicaid, or can choose to buy private long-term-care insurance. The GUIDE Model, where a participating provider operates near you, adds dementia care navigation, a 24/7 support line, and respite for traditional-Medicare beneficiaries. For the performance year that began July 1, 2026, GUIDE respite is capped at $2,625 a year per eligible patient, and CMS pays the participating provider, not the family. Only patients with moderate or severe dementia whose primary caregiver is a relative or an unpaid nonrelative, such as a friend, and who do not live in assisted living or another residential care community qualify.6 Ask your neurologist or the Alzheimer's Association helpline whether a GUIDE provider serves your part of Indiana.

Respite for dementia caregivers

Respite is what makes the long haul survivable. In Indiana, the National Family Caregiver Support Program funds respite care through the state aging network, and its eligible participants include family caregivers of a person of any age with Alzheimer's disease and related disorders.2 If your loved one is a PathWays member, the member's PathWays health plan can provide resources to support you.1 For the full picture, see Respite Care in Indiana.

A few days a week at a dementia-capable adult day program often does double duty: it gives you reliable hours back, and the structure, activity, and social contact frequently improve sleep, mood, and behavior for the person with dementia.

Managing safety, behavior, and legal planning

Dementia raises issues other caregiving does not, and most of them are easier to handle before a crisis forces the question.

• Wandering. Keep a recent photo and a short list of the places your loved one gravitates to, consider door alarms or a GPS locator, and ask local first responders whether they offer a registry or "safe return" program. The Alzheimer's Association (1-800-272-3900) offers free care consultations with a master's-level dementia expert for individualized, solution-focused support.2
• Driving. Deciding when to stop driving is one of the hardest conversations. Ask the diagnosing physician to put the recommendation in writing; it takes the decision off your shoulders and gives you something concrete to point to.
• Sundowning. Late-day agitation is common. Keep afternoons calm and well-lit, hold routines steady, limit caffeine and long naps, and note what tends to set it off; a free helpline care consultation can help you work through it.
• Legal documents, signed early. A durable power of attorney, an advance directive, and a long-term-care plan are far easier to put in place while your loved one can still participate. Once dementia advances, capacity to sign is contestable. See Advance Directives: A Caregiver's Guide for the documents and how to get them.

When it is time to think about a dementia-capable facility, memory care in Indiana walks through what to look for and how to pay for it.

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The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.