VA Aid and Attendance can help pay for in-home care in Indiana, and most families don't realize how much it covers. It's a monthly cash benefit paid directly to the veteran, who decides how to spend it: a home health aide, a homemaker, or even a family member providing the care. For a wartime veteran or surviving spouse who needs help with daily activities, it can be what keeps them at home.

This guide explains what in-home care costs in Indiana, how much Aid and Attendance pays, who qualifies, and how the benefit works alongside Indiana Medicaid.

In This Guide

How Much In-Home Care Costs in Indiana

In-home care in Indiana sits near the national average and still adds up quickly. According to the CareScout (Genworth) 2024 Cost of Care Survey, a home health aide in Indiana costs about $75,504 per year (roughly $6,292 per month) and homemaker services about $73,216 per year (roughly $6,101 per month), each based on a 44-hour-per-week schedule. Indiana's costs sit at or below national medians in most settings.

Costs are higher in the Indianapolis metro and northern markets than in rural areas, and they climb as care needs grow. This is exactly the kind of expense Aid and Attendance is designed to offset.

How Aid and Attendance Helps Pay for In-Home Care

Aid and Attendance is an increased monthly VA pension for wartime veterans and surviving spouses who need help with daily activities. It is paid as cash directly to the veteran, who decides how to use it. There is no requirement to spend it at a particular agency, so it can pay for a home health aide, a homemaker, or a family caregiver.

Category Monthly Amount
Veteran alone Up to $2,424
Veteran with spouse Up to $2,874
Surviving spouse Up to $1,558

At up to $2,424 a month for a veteran, the benefit covers a meaningful share of Indiana's roughly $6,292 monthly cost for a home health aide, and at up to $2,874 for a veteran with a spouse it covers even more. Keep in mind the VA pays the veteran; the veteran arranges and pays for the care.

How In-Home Care Costs Lower Your Countable Income

VA pension, including the Aid and Attendance increase, is a needs-based benefit: the VA pays the difference between your countable income and a set annual limit. Continuing, out-of-pocket care costs, such as paying a home health aide, count as unreimbursed medical expenses (UMEs) that reduce the income the VA counts, which is why many veterans who look "too rich" on paper still qualify once their care bills are subtracted.

Only the portion of those expenses above 5% of the applicable annual pension limit is deductible. For 2026 that floor is about $872 per year for a veteran with no dependents and $1,141 per year for a veteran with one dependent. So if a veteran pays $75,504 a year for in-home care, nearly all of it counts against income once the first roughly $872 is set aside. In-home and attendant care qualify as deductible expenses when the veteran has a documented need for that care.

Who Qualifies

To qualify for Aid and Attendance, a veteran generally must:

  • Have served at least 90 days of active duty with at least one day during a wartime period
  • Be 65 or older, or permanently and totally disabled
  • Need help with daily activities such as bathing, dressing, or feeding, or be housebound
  • Have a net worth below $163,699 (this limit includes assets and annual income but excludes the primary home and vehicle)

The VA enforces a 3-year look-back on assets transferred for less than fair market value before filing. A surviving spouse can qualify under the Survivors Pension using the same net worth limit.

Using Aid and Attendance to Pay a Family Caregiver

Many families want to keep care in the family, and there are two ways VA benefits make that possible. First, because Aid and Attendance is cash paid to the veteran, the veteran can simply use it to pay a relative who provides care.

Second, the Veteran-Directed Care (VDC) program gives the veteran a flexible monthly budget to hire their own caregivers, including family members. The veteran (or their representative) decides who provides care and how to spend the budget, and a financial management service handles payroll and taxes. Unlike many Medicaid programs, VDC has no blanket ban on hiring a spouse. To ask about VDC, contact your local VA medical center's social work or geriatrics department.

How Aid and Attendance Works with Indiana Medicaid

VA Aid and Attendance is paid as an increase added to a qualified veteran's or survivor's VA pension, and for an Indiana senior who also needs Medicaid long-term care, the two programs interact. Indiana Medicaid covers long-term care for low-income aged, blind, and disabled Hoosiers through institutional and home- and community-based pathways, including the Indiana PathWays for Aging program for members age 60 and older, administered by the Family and Social Services Administration.

Under general federal pension rules, VA pension (including the Aid and Attendance increase) is counted as income, but unreimbursed medical expenses such as out-of-pocket care can reduce the income that counts for VA pension purposes. Because how a VA pension is treated for Medicaid depends on the pathway and your circumstances, confirm with a County Veterans Service Officer and the Indiana Medicaid eligibility office before relying on any single rule.

How to Apply and Get Free Help

To apply for Aid and Attendance, submit VA Form 21-2680 (Examination for Housebound Status or Permanent Need for Regular Aid and Attendance), with a doctor's exam documenting the need for help. If you are not already receiving a VA pension, also file VA Form 21P-527EZ (Application for Veterans Pension). Claims commonly take 3 to 6 months.

Don't do this alone. The Indiana Department of Veterans Affairs and its network of certified County Veterans Service Officers help veterans, dependents, and survivors prepare paperwork and file VA pension and Aid and Attendance claims at no charge. A County Veterans Service Officer completes federal and state benefit applications on your behalf at no cost.

Frequently Asked Questions

Yes. Aid and Attendance is paid as cash to the veteran, who can use it for a home health aide, a homemaker, or other in-home care. With a home health aide in Indiana running about $6,292 a month, the benefit of up to $2,424 (or up to $2,874 with a spouse) covers a meaningful share of the cost.

No. The VA pays the veteran a monthly cash benefit; the veteran arranges and pays for the care. That's what makes the benefit flexible enough to cover an agency aide or a family caregiver.

Often not. Out-of-pocket in-home care counts as an unreimbursed medical expense that lowers the income the VA counts, but only the portion above about $872 a year (or $1,141 with one dependent) is deductible. Large care bills can reduce countable income enough to qualify.

Yes, the two are separate programs and can be received together. Because Medicaid treatment varies by pathway, confirm with a County Veterans Service Officer and the Indiana Medicaid eligibility office.

Compare Care Settings in Indiana

Aid and Attendance can help pay for any care setting. See how it works for the others:

Learn More

Find personalized help using VA benefits to pay for in-home 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.

BC

Brevy Care Team

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