Around-the-clock nursing home care runs about $315 a day at the national median, roughly $114,975 a year. Indiana sits among the least expensive states, so a semi-private room here costs less than that, but it is still far more than almost any family can pay out of pocket for long. So the real question is which funding source applies to you, and in what order. This guide lays out how to pay for senior care in Indiana in 2026.

Most families combine several sources. Private savings buy time while you line up Indiana Medicaid, VA benefits, or insurance.

In This Guide

How to Pay for Senior Care in Indiana: Your Options

There are five main ways to pay. Each one covers something different. Most families use a mix.

Payer What It Does What It Doesn't Do
Out of pocket Pays for any care, anywhere, right away Drains savings fast at Indiana prices
Medicare Up to 100 days of skilled care after a hospital stay No long-term assisted living or custodial nursing home care
Medicaid (PathWays/waivers) The main payer for long-term nursing home and home care Strict income and asset limits apply
VA Aid and Attendance Extra monthly cash for wartime veterans and surviving spouses Only for those who qualify by service and need
Long-term care insurance Pays toward home care, assisted living, and nursing homes Only if a policy was bought years earlier

What Senior Care Costs in Indiana

Know what you're paying for before you work out how to pay. The figures below come from the CareScout 2025 Cost of Care Survey, released in March 2026 and the successor to the long-running Genworth survey. Indiana is among the least expensive states for senior care, running at or below the national medians in every setting.

Care Type Cost What It Is
Non-medical caregiver (in-home) About $35/hour (Indiana) Help with daily activities, meals, and errands
Private-duty nurse (in-home) About $70/hour, roughly $175/visit (Indiana) Skilled nursing care at home
Adult day care About $95/day (U.S. median); Indiana below Daytime supervision and activities
Assisted living About $6,200/month, $74,400/year (U.S. median); Indiana below Room, board, and personal care
Nursing home (semi-private) About $315/day, $114,975/year (U.S. median); Indiana below Skilled, around-the-clock care
Nursing home (private room) About $10,798/month, $129,575/year (U.S. median); Indiana below Private room, skilled care

The 2025 survey merged the old "homemaker" and "home health aide" categories into a single non-medical caregiver rate, about $35 an hour in Indiana. The Indianapolis metro and northern Indiana markets generally run higher than rural counties. Even so, at the national median of about $114,975 a year, two years of nursing home care runs well into six figures, more than almost any family has saved. That is why families combine the funding sources below. For a fuller breakdown, see our cost of senior care in Indiana guide.

Paying Out of Pocket

Most families start here. They draw on Social Security, pensions, retirement savings, and home equity. For a while it may be the only option, especially before Medicaid comes through.

A few private-pay tools Indiana families use:

  • Home equity. Sell the home, rent it out, or borrow against it. A reverse mortgage (for owners 62 and older) turns equity into cash. But the home is usually exempt for Medicaid, so weigh any move against a future Medicaid plan first.
  • Life insurance. Some policies pay an accelerated death benefit for a terminally ill policyholder, or can be sold in a life settlement.
  • Retirement and investment accounts. The most flexible source. They are also countable assets for Medicaid, so spending them down has consequences later.

The hard truth: paying out of pocket at Indiana prices drains savings fast. Treat private pay as a bridge. Our guides to paying for in-home care and paying for assisted living cover the options in more depth.

What Medicare Does and Doesn't Cover

This is where families get caught off guard. Medicare does not pay for long-term care. It will not cover the ongoing help with bathing, dressing, eating, and supervision that most seniors eventually need.

What Medicare does cover is limited and medical:

  • Skilled nursing facility care for up to 100 days after a qualifying three-day hospital stay. Days 1 through 20 are covered in full. Days 21 through 100 require a daily coinsurance of $217 in 2026. After day 100, nothing.
  • Home health care when a doctor orders skilled nursing or therapy and the person is homebound.
  • Hospice care for someone who is terminally ill.

What Medicare never covers: long-term nursing home stays, assisted living, adult day care, and non-medical home care. For ongoing care, Hoosiers rely on Medicaid, VA benefits, insurance, or private pay.

How to Pay for Senior Care in Indiana Through Medicaid

Indiana Medicaid is the dominant payer for long-term senior care in the state. It is administered by the Family and Social Services Administration (FSSA), with eligibility processed by the Division of Family Resources (DFR). Long-term care for older adults now runs largely through Indiana PathWays for Aging, the managed-care program launched in July 2024 for members aged 60 and older.

Indiana Medicaid covers nursing home care, assisted living through waivers, and in-home care for people who qualify financially and clinically.

Who Qualifies in 2026

Indiana is an income-cap state. The rules are strict.

  • Income: up to $2,982 a month for a single applicant for nursing-facility or waiver coverage in 2026 (300% of the federal SSI benefit rate).
  • Assets: up to $2,000 in countable assets for a single applicant; $3,000 for a couple with both applying. The home (subject to an equity cap of $752,000), one vehicle, household goods, and a prepaid burial are exempt.
  • Spousal protection: the at-home spouse can keep up to $162,660 in assets (the Community Spouse Resource Allowance) so they are not left with nothing.

Being over the income cap does not shut you out. An applicant whose gross income exceeds $2,982 a month must set up a Qualified Income Trust (also called a Miller Trust). Deposit the excess income each month, and the trust pays it back out for allowable costs. The trust has to be in place before eligibility starts. Say a single applicant's Social Security and a small pension put her a couple hundred dollars over the $2,982 cap. Rather than being denied, she routes the excess into a Qualified Income Trust each month and qualifies.

Not every Indiana Medicaid path opens at the same speed. Nursing-facility Medicaid is an entitlement for those who qualify. Home-and-community-based waiver slots, including PathWays, can be limited, so some families private-pay as a bridge while a slot opens or use the nursing-facility track in the meantime. You apply through the FSSA Benefits Portal (fssabenefits.in.gov), at a local Division of Family Resources office, or by calling the DFR at 1-800-403-0864.

Indiana also applies a 60-month look-back. Assets given away or sold for less than fair value in the five years before applying can trigger a penalty period. The length of that penalty depends on Indiana's average monthly nursing-home cost, the "penalty divisor" the DFR sets, so ask the DFR or an elder-law attorney to estimate it for your case. For the full picture, see our guides to Indiana Medicaid income limits, how to apply for Indiana Medicaid, and Indiana Medicaid estate recovery.

Not sure whether your parent qualifies for Indiana Medicaid? Chat with Brevy's care navigator at brevy.com.

VA Aid and Attendance for Veterans

If your loved one is a wartime veteran or the surviving spouse of one, VA Aid and Attendance can be a real funding source. It is an extra monthly amount added to the VA pension for veterans who need help with daily activities or are housebound. The money can pay for home care, assisted living, or a nursing home.

For the rate year that began December 1, 2025, the maximum monthly amounts are:

  • Single veteran: up to $2,424 a month.
  • Veteran with a spouse or dependent: up to $2,874 a month.
  • Surviving spouse: up to $1,558 a month.

Aid and Attendance is need-based. The actual payment is the maximum rate minus countable income, after subtracting unreimbursed medical costs. The 2026 net worth limit is $163,699, and there is a three-year look-back on asset transfers. It can work alongside Medicaid in some cases, so check it early.

Long-Term Care Insurance

Did your family member buy a long-term care policy years ago? If they did, that changes everything. Dig it out now. Read the benefit triggers, the daily maximum, and the waiting period before you need them. These policies typically pay toward home care, assisted living, and nursing home care up to a set daily or monthly amount.

Some older policies tie to the federal and state Long-Term Care Partnership Program, which links approved policies to extra Medicaid asset protection. Dollars the policy pays out are dollars you can keep above Indiana's $2,000 asset limit and still qualify for Medicaid later. New policies are expensive and hard to qualify for after 65, so this is mainly a tool for people who bought in earlier. If a policy exists, treat it as central, and time a Medicaid application around when its benefits run out. Our guide to long-term care insurance explains how these policies work.

Other Ways to Pay for Senior Care in Indiana

A few smaller levers can stretch a budget, though none replaces the main sources above. Get advice before using the ones with lasting consequences.

  • Home modifications through a Medicaid waiver. For people on a PathWays or home-and-community-based waiver, the plan can fund grab bars, ramps, and similar changes that let someone stay home safely.
  • Annuities and trusts. A Medicaid-compliant annuity converts a lump sum of countable assets into a guaranteed income stream, which can help a couple protect resources while one spouse qualifies. Certain irrevocable trusts can reposition assets too. The 60-month look-back and Indiana's specific rules make these easy to get wrong. Talk to an elder-law attorney first.
  • A written funding plan. Combining sources in the right order is the whole game. Our guide to building a senior care funding plan walks through how to sequence them.

Learn More

FinancialIndiana Senior Property Tax ReliefIndiana's 2025 law replaced the old Over-65 Deduction with new credits. Here's who qualifies, what each credit pays, and how to apply by January 15. FinancialIndiana Retirement Income TaxNo, Indiana doesn't tax Social Security or military retirement, but it taxes IRA, 401(k), and most pension income at a flat rate. Here's the full breakdown. FinancialHow to Pay for Senior CareHow to pay for senior care: what it costs nationally and how Medicaid, Medicare, VA benefits, and private pay each fit. Who qualifies, what's covered, in 2026. FinancialHow to Pay for Assisted LivingHow to pay for assisted living in 2026: what it costs and how private pay, Medicaid waivers, VA Aid and Attendance, and long-term care insurance each fit. FinancialHow to Pay for Nursing Home CareHow to pay for nursing home care in 2026: what it costs and how Medicaid, Medicare, VA benefits, long-term care insurance, and private pay each fit in. FinancialHow to Pay for In-Home CareHow to pay for in-home care in 2026: what it costs and how Medicare, Medicaid HCBS waivers, VA benefits, and long-term care insurance each help cover it. Care TypesCost of Senior Care in IndianaWhat senior care costs in Indiana in 2026: in-home care runs about $35 an hour, and Indiana sits below national medians for assisted living and nursing care. MedicaidIndiana Medicaid Income LimitsSee the 2026 Indiana Medicaid income limits and asset rules. Indiana is an income-cap state, so over-income applicants need a Miller Trust to qualify for care. MedicaidHow to Apply for Indiana MedicaidApply for Indiana Medicaid through the FSSA Benefits Portal, a local DFR office, or by phone, plus Miller Trust rules, documents, timelines, and appeals. MedicaidIndiana Medicaid Estate RecoveryIndiana Medicaid estate recovery applies after death to LTC recipients 55+. Learn who's protected, what assets are at risk, and how to respond to an FSSA claim.

Frequently Asked Questions

Does Medicare pay for assisted living or a nursing home in Indiana?

No. Medicare does not cover assisted living, adult day care, or long-term custodial nursing home care. It only pays for limited skilled care: up to 100 days in a skilled nursing facility after a qualifying hospital stay, plus doctor-ordered home health and hospice. For ongoing care, Hoosiers rely on Medicaid, VA benefits, long-term care insurance, or private pay.

How does Indiana Medicaid help pay for senior care?

Indiana Medicaid pays for long-term care through nursing-facility coverage and home-and-community-based waivers, now delivered for older adults through Indiana PathWays for Aging. It covers nursing home care, assisted living, and in-home care. In 2026 a single applicant can have income up to $2,982 a month and no more than $2,000 in countable assets. People over the income cap can still qualify using a Qualified Income Trust.

How much does senior care cost in Indiana?

Indiana is among the least expensive states for senior care, running below the national medians. In 2026 the national median is about $315 a day ($114,975 a year) for a semi-private nursing home room, about $10,798 a month for a private room, and about $6,200 a month ($74,400 a year) for assisted living, with Indiana below each. In-home care in Indiana runs about $35 an hour for a non-medical caregiver. The Indianapolis metro and northern Indiana run higher than rural counties.

Can VA benefits pay for senior care in Indiana?

Yes. A wartime veteran or surviving spouse who needs help with daily activities may qualify for VA Aid and Attendance, an extra monthly amount on top of the VA pension. For the rate year that began December 1, 2025, it pays up to $2,424 a month for a single veteran, $2,874 with a dependent, and $1,558 for a surviving spouse. The money can go toward home care, assisted living, or a nursing home.

Find personalized help paying for senior care in Indiana at brevy.com.

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.

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Brevy Care Team

Expert eldercare guidance from Brevy's team of healthcare professionals and researchers.