Indiana Long-Term Care Resources

Discover state-specific information on long-term health care costs, taxes, rules, care options, and other information for Indiana residents.

State Information

As an original partnership state, Indiana offers both total asset protection and dollar-for-dollar asset protection options protecting residents' assets from the high costs of long-term health care. 

Quality care options are available statewide, and several insurance solutions are available to address the financial impact of future long-term care.

However, rapidly increasing costs for care services are becoming burdensome on Indiana residents and their families for those who do not have Long-Term Care Insurance.

There are a wide variety of care options available in Indiana for those who require long-term health care services, including 

  • adult day care centers
  • assisted living facilities
  • continuing care retirement communities
  • home health care providers
  • memory care facilities
  • rehabilitation facilities
  • traditional nursing homes

Top insurance companies have several insurance options to help residents safeguard income and assets, protect lifestyles, and preserve a legacy. Plus, policyholders will have access to quality care options giving loved ones the time to be family instead of caregivers.

There are also tax incentives available for those who pruchase qualified Long-Term Care Insurance.

Federal Partnership Program

The State of Indiana was one of the four original partnership states. The Indiana Long-Term Care Insurance Partnership Program (ILTCIP) is a special program. It combines private long-term care insurance with special access to Medicaid. The private long-term care insurance companies must offer a specific level of benefits to allow policyholders to qualify for additional asset protection

Indiana’s program is unique as it provides options for both ‘total dollar’ asset protection and ‘dollar-for-dollar’ asset protection.

Effective April 1, 2009, Indiana was approved by the federal government to join the National Reciprocity Compact for granting Medicaid asset protection to policyholders from other states that have Partnership long-term care programs. Indiana Partnership policyholders who relocate to another state may be eligible to receive dollar for dollar asset protection if applying to that state’s Medicaid program.

The insurance policy benefits are payable in any state where you reside.  But now with Indiana participating in the Reciprocity Compact, the asset protection benefit in your Indiana Partnership policy will be honored by other states.

Policy Example

With "total dollar" asset protection the policy would provide for 100% asset protection. With this policy, if you exhaust benefits in the policy you are able to protect every asset you have. With a "dollar-for-dollar" policy, you shelter your estate based on the amount of total benefits paid by the policy. For example, if your policy paid $450,000 in benefits you would be able to shelter $450,000 and still qualify for the Medicaid benefit.

Reciprocity

Most states have reciprocity with other states' long-term-care partnership programs including Indiana. This means if you move from or to Indiana your partnership asset protection follows you as well.

Medicaid

Long-Term Care Medicaid spend down is $2,000.  A spouse’s minimum asset allowance is minimum of $26,076 up to a maximum of one-half of countable assets up to $130,380 . Your spouse’s minimum monthly income allowance is $2,155.* The home equity limit is $603,000.

For more information about the Medicaid program visit www.medicaid.gov.

Products Approved in Indiana

A variety of products are approved in Indiana for Long-Term Care planning. These include traditional plans, including partnership certified policies, short-duration policies, and asset-based “hybrid” plans.

Tax Incentives

The State of Indiana also offers state tax incentives. This tax deduction applies only to Indiana Partnership Policies. An individual taxpayer is permitted to deduct an amount equal to the eligible portion of premiums paid during the taxable year by the taxpayer for a qualified LTC insurance policy (as defined in the Indiana Code) for the taxpayer, the taxpayer’s spouse, or both. The deduction only applies to the Partnership program. Ind. Code § 6-3-1-3.5 and § 12-15-39.6.5 (Qualified Long-Term Care Policy).

Reverse Mortgages in Indiana

Reverse mortgages are available in Indiana. A reverse mortgage is a home equity loan where the borrower does not have to make payments.

This type of mortgage can increase monthly income, eliminate mortgage payments, and even fund Long-Term Care Insurance. However, Indiana has many rules on these products, and you should seek the help of a qualified and licensed mortgage broker. 

If you have significant equity in your home and you and your spouse are at least 62 years old, you can get a reverse mortgage to turn your equity into funding long-term health care, pay for an LTC Insurance policy, pay bills and add to your retirement lifestyle.

The home must be the principal residence without any tax liens. 

Learn more about reverse mortgages by clicking here.

*The federal government sets a new minimum and maximum amounts each year, but states can set their own minimum requirements at any level between the federal limits. This information is based on the best available sources.

Indiana state emblem

State Breakdown

State Partnership Program
State Tax Incentives
Federal Tax Incentives
Rate Stability Rules
Medicaid Spend Down $2,000
Minimum Asset Allowance $26,076
Minimum Monthly Income Allowance $2,155
Compare with All States

Indiana Cost of Care Calculator

Calculate the costs of long-term care in your area. Use the slider below to calculate and compare the future costs of long-term care services in Indiana to the national median.

Calculate future cost

(+ Years)

Use the slider to adjust the future year

2022

2032

2042

2052

2062

2072

2082

Compare with your area

Select the location nearest you:

Long-Term Care Throughout Indiana

Indianapolis

http://upload.wikimedia.org/wikipedia/commons/2/24/Indianapolis-1872529_1920-standard.jpgIndianapolis is the capital of the State of Indiana and is the state’s largest city, although part of Indiana is considered part of the Chicago, Illinois metropolitan area and another portion of the state is part of the Louisville, Kentucky metro area. The average skilled nursing facility cost runs $7,832 a month. The cost of an Assisted Living Facilityaverages $5,053 a month. Adult Day Care Centers average $1,733 a month. Care at home, based on a 44-hour week, averages $4,362 a month.

More Locations

Other major population centers in Indiana include Fort Wayne which is the second largest city in the state. The average skilled nursing facility cost runs $8,623 a month. The cost of an Assisted Living Facilityaverages $2,978 a month. Adult Day Care Centers average $1,517 a month. Care at home, based on a 44-hour week, averages $4,767 a month.

Other towns in the state include Anderson, Bloomington, Carmel, Elkhart, Evansville, Fishers, Gary, Greenwood, Hammond, Kokomo, Lafayette, Muncie, Noblesville, South Bend, Terre Haute,     

LTC News Trusted & Verified

Get Accurate Quotes

Work With A Trusted Specialist

  • Has substantial experience in Long-Term Care Insurance
  • Strong understanding of underwriting, policy design, and claims experience
  • Represents all or most of all the leading insurance companies
man sitting at desk