Indiana Medicaid, run by the Division of Family Resources, provides many different Medicaid programs to low-asset and low-income Indiana residents for their health care needs. Most of these programs have asset limits and/or income limits. These limits are usually set by the state based on the federal government’s poverty level.
To achieve Medicaid eligibility for vendor Medicaid (also known as nursing home Medicaid or long-term care Medicaid), the asset limit is $2000 and the monthly income limit is just under $3000. Countable assets for Indiana Medicaid include bank accounts, IRAs, and life insurance policies. Exempt, non-countable assets include the primary residence and one vehicle. Monthly income, like social security and pensions, must be paid to the nursing facility as a co-pay for the cost of care. Exceptions are made for Medicare premiums and a small personal needs allowance to cover items and services not provided by the nursing home.
The financial eligibility requirements for Home and Community Based Services (HCBS) are similar, however, HCBS waiver programs allow for caregiving in-home, at adult day care, or in assisted living. The Medicaid recipient must qualify for a nursing home level of care. HCBS programs are intended to delay or prevent admission to a nursing home by providing long-term care services in the community. Unlike vendor Medicaid, HCBS programs are not entitlement programs, which means that there are often wait-lists.
For both vendor Medicaid and HCBS Medicaid, excess income can be diverted to a trust, known as a Miller trust or a qualified income trust, which allows the Medicaid beneficiary to receive benefits even though they are over income. This type of trust limits spending to certain qualified medical expenses.
When one spouse of a married couple applies for Medicaid, different income and asset rules apply to the non-applicant spouse, also known as the community spouse. The community spouse is granted a community spouse resource allowance of $162,660 in assets, which prevents them from becoming impoverished while their family member continues to receive the state’s health insurance.
When beginning the Medicaid application process, it is recommended to seek the advice of an elder law attorney. The attorney can provide services such as estate planning and Medicaid planning, as well as assistance with the application itself. Quality Medicaid Care is proud to provide these services to families and individuals in the process of applying for Medicaid.