Assisted Living in Indiana

Considered one of the top 10 most affordable states to live in the United States, Indiana is a state where retirees can stretch their savings and enjoy a potentially high quality of life. Affordable senior care options make this a popular place to retire. Of the 6.8 million people who live here, over 16% are aged 65 and older. The state is home to the Indiana University Health Medical Center, which U.S. News and World Report ranks in the top 50 hospitals in the country for senior care.

On the 2022 Senior Living Report, Indiana ranks sixth for affordability and 17th for senior living and housing costs. Overall, it falls 33rd in the nation for all ranking factors. The cost of assisted living, which averages $4,283 a month, is one of the reasons the state ranks so well for affordability.

This guide outlines the costs of residential care in Indiana and provides resources older adults can use to cover those costs. It gives seniors and their families a convenient list of nonprofit and government agencies that assist seniors with their retirement needs while also outlining the rules and regulations that govern Indiana’s assisted living communities.

The Cost of Assisted Living in Indiana

The 2021 Genworth Cost of Care Survey indicates assisted living care is affordable in Indiana. While the national average is $4,500, Indiana seniors pay just $4,283 a month. It falls right in the middle of the surrounding states of Illinois, Ohio, Kentucky and Michigan, which are $4,488, $4,635, $3,448 and $4,250, respectively.

Cities in Indiana have very different costs of assisted living. Some are much higher than the state’s average, but others are lower. Kokomo in the central part of the state has the most affordable average of $3,250, while Lafayette near the Illinois border has the highest — over $2,000 more, at $5,255 a month. Bloomington shares the state’s average of $4,283, while Indianapolis is about $200 higher a month, at $4,478. In the Michigan City area near Lake Michigan, seniors average $3,617 a month, while Evansville in the far southern part of the state has an average of $4,389 a month. Finally, Terre Haute comes in at the higher end, at $4,948 a month.

Indiana seniors can choose from a number of senior care options. Assisted living gives them access to help with daily living needs and a high level of independence, and it averages $4,283 a month. The most affordable option is adult day health care, which involves care during the day and living at home at night. This type of care averages $1,733 a month. Receiving homemaker services or home health aide care in the home costs $4,767 a month, and nursing home care in a semiprivate room is the most costly option, at $7,270 a month.

Does Medicaid Cover Assisted Living in Indiana?

Medicaid in Indiana doesn’t directly pay for assisted living costs. In Indiana, seniors can use Medicaid funds to pay for assisted living costs through two programs, the Home and Community-Based Services waiver program and the Residential Care Assistance Program. These programs allow Medicaid-eligible seniors to apply their Medicaid funds toward their assisted living costs.

What Assisted Living Services Are Covered by Medicaid in Indiana?

Under the Home and Community-Based Services waiver program or the Residential Care Assistance Program, income-qualified individuals residing in assisted living communities or other residential treatment facilities can have many of their services covered, including:

• Room and board
• Assistance with activities of daily living
• Recreational programs
• Meals
• Medical care

Through these waiver programs, all assisted living costs can be paid with Medicaid funds, but the amount of money available depends on the assets and income of the applicant.

Assisted Living Waiver Programs in Indiana

Home and Community-Based Services Waiver

The Home and Community-Based Services Aged and Disabled waiver program provides alternatives to nursing homes for seniors and disabled individuals who need care and support. Some use these funds to live at home, while others use them to move to an assisted living facility.

Some of the services available through this waiver program include:

• Assisted living care
• Community transition
• Health care coordination
• Emergency response system
• Respite care
• Nutritional supplements
• Transportation

Applicants are assigned a case manager who evaluates their needs and chooses the specific services that apply to each person. These services become part of a Plan of Care/Notice of Action for the applicant.

To be eligible for this program, a senior must:

• Be aged, blind or disabled
• Have an income no more than 300% of the maximum Supplemental Security Income amount
• Meet “nursing facility level of care” criteria
• Be living in or planning to transition to an HCBS-compliant facility

Seniors should apply as soon as they feel they need these services. Applicants must first qualify for Medicaid. Then, they must visit their local Area Agency on Aging to get help applying for HCBS waiver services. Waitlists for this program are common in Indiana, so applying early is important.

Residential Care Assistance Program

The Residential Care Assistance Program is available for Medicaid recipients or those who receive Supplemental Security Income and are already in an RCAP-approved facility. The program provides funds to pay for:

• Room and board
• Laundry
• Care coordination

Money is paid at an approved per-day rate established through the Division of Aging unless the resident has no income, in which case RCAP pays room and board monthly.

To qualify for this program, a senior must:

• Be 65 or older or be blind or disabled
• Currently receive Medicaid or SSI
• Live in an RCAP facility
• Not require a nursing home level of care

The RCAP community helps the applicant with the application process, or the applicant’s family members can download the application and collect supporting documentation to submit to the Division of Family Resources via email at FSSA.APPS4RCAP@fssa.in.gov.

How To Know If You’re Eligible for Medicaid in Indiana

Indiana’s Medicaid programs are overseen by the Family and Social Services Administration and the Division of Family Resources. Medicaid eligibility in Indiana is primarily based on income. Other eligibility qualifications include:

• Being a resident in the state of Indiana
• Being a U.S. national, citizen, permanent resident or legal alien
• Needing health care or insurance assistance

As of 2022, single applicants for Medicaid in Indiana can have a yearly income of no more than $16,971.

2022 Medicaid Income Limits for Seniors in Indiana

Individuals eligible for the HCBS waiver may be able to qualify with a monthly income of up to $2,382 or $28,584 a year. Vehicles, homes, burial spaces and retirement savings don’t count as assets for these considerations.

How To Apply for Medicaid in Indiana

To apply for Medicaid in Indiana, seniors can visit the Family and Social Services Administration website to apply online. Seniors can also print applications and drop them off at the Department of Family Resources office closest to them.

Information You Will Need

Before starting the application process, individuals will need to gather some documents. These include:

• Proof of household income
• Tax filing details
• Proof of age
• Proof of citizenship or legal resident status
• Social Security number
• Details about other insurance policies

Seniors applying for HCBS also need proof they are medically in need of these services.

How To Get Help Applying for Medicaid

Several agencies and programs in Indiana can help seniors apply for health insurance through Medicaid. Some seniors already in assisted living facilities can get help there, especially if they’re applying for RCAP. Other groups that can help seniors find the right plan and apply for it include these:

Does Medicare Cover Assisted Living in Indiana?

The short answer is that no, Medicare does not cover the cost of assisted living in Indiana. Assisted living facilities are considered to be a “residential setting” and not a “clinical setting,” (think nursing homes). While Medicare doesn’t cover the cost of care received in an assisted living community, it does still cover things like approved medications, doctor visits, medical equipment, etc., just like it would if you lived at home.

For more information about when Medicare can be used to pay for senior living in a nursing home, and for Medicare-related resources, see our guide to Nursing Homes in Indiana.

DEV NOTE: Please include a link to the section on the appropriate nursing home state page that discusses Medicare.

Other Financial Assistance Options for Assisted Living in Indiana

Seniors who are not eligible (due to location, financial situation, or other factors) for other types of financial assistance, do still have some options. See the table below for an overview of some of the most common ways to make Assisted Living affordable.

Free and Low-Cost Resources for Seniors in Indiana

Many agencies and nonprofit organizations throughout Indiana offer services to seniors. By reaching out to these groups, those living in assisted living communities can access resources beyond their communities and maximize the benefits they are entitled to receive because of their age or disability status. These groups provide their services to local seniors at little to no cost.

COVID-19 Rules for Assisted Living in Indiana

The following information is based on research done on several government websites, including coronavirus.in.gov and The CDC. These rules apply to nursing homes and other types of senior living facilities. We’ve most recently updated this data on 03/16/2022, but since COVID-19 is a rapidly evolving pandemic, contact your local senior living facility or Area Agency on Aging for more specific and up-to-date information.

Visitation Policies

Outings & Social Activities

COVID-19 Safety Measures for Staff and Residents

Assisted Living Laws and Regulations in Indiana

The Indiana State Department of Health oversees the rules, regulations and licensing of assisted living communities. A strict set of regulations ensures these facilities can provide the right level of care to each resident they serve.

Frequently Asked Questions