Do I Qualify for Medicaid in Indiana? Income and Asset Limits

Eligibility for Indiana Medicaid depends on which group you fall into. Non-disabled adults ages 19 to 64 qualify for the Healthy Indiana Plan if household income is at or below 138% of the federal poverty level, which works out to about $22,026 a year for a single person in 2026.¹ Children, pregnant women, and people who are aged, blind, or disabled qualify through separate programs with their own income limits and, in some cases, an asset test. The Family and Social Services Administration (FSSA) runs all of these programs.

Which Program Applies to You

Indiana sorts applicants by age, disability status, and household circumstances before applying any income rule. Non-disabled adults between 19 and 64 who aren’t on Medicare go through the Healthy Indiana Plan (HIP).² Children under 19 and pregnant women apply through Hoosier Healthwise, which also houses the Children’s Health Insurance Program (CHIP) for families with modestly higher incomes.³ People who are blind or disabled and under 60 use Hoosier Care Connect; people 60 and older use Indiana PathWays for Aging; and people in nursing facilities or dually eligible for Medicare and Medicaid fall under Traditional Medicaid.⁴ Working adults with disabilities ages 16 to 64 have a separate pathway called MED Works.⁵

Which program you land in decides what income counts, whether assets count, and what you pay.

Income Limits for Adults (Healthy Indiana Plan)

HIP uses Modified Adjusted Gross Income, which is essentially your adjusted gross income from your tax return with a few additions like tax-exempt interest.⁶ You qualify if your household income is at or below 138% of the federal poverty level. In 2026, the FPL for a single person is $15,960.⁷

Approximate annual income ceilings by household size:

Individual: up to $22,026
Couple: up to $29,870
Family of four: up to $45,546¹

HIP has no asset or resource test. Savings, vehicles, and property value don’t count against you.⁸ HIP is not free, though. Every member has a POWER account funded mostly by the state, with a monthly member contribution between $1 and $20 depending on income, and tobacco users may owe up to a 50% surcharge.⁹

Income Limits for Children and Pregnant Women

Hoosier Healthwise also uses MAGI, but with higher ceilings. Package A provides full medical, dental, mental health, prescription, and hospital coverage at little or no cost.³

Monthly income ceilings effective March 2026:

Children, family of 2: up to $2,939
Children, family of 3: up to $3,711
Children, family of 4: up to $4,483
Pregnant women, family of 2: up to $3,841
Pregnant women, family of 3: up to $4,850
Pregnant women, family of 4: up to $5,858¹⁰

For a pregnant applicant, each unborn child counts as a household member when the state calculates size. Children in families earning above Package A limits may still qualify through CHIP (Package C). A family of four, for example, can earn up to $7,013 a month under CHIP.¹⁰

Rules for Aged, Blind, or Disabled Applicants

If you’re applying as aged (60+), blind, or disabled, the state does not use MAGI. It uses traditional income counting and adds an asset test.⁸ A disability determination from the Social Security Administration or from Indiana’s Medicaid Medical Review Team is required; SSA determinations take priority. If you work despite a disability and earn at least the federal minimum wage times 40 each month, you may keep coverage through MED Works.⁵

Asset Limits

Countable assets are capped at $2,000 for a single person and $3,000 for a married couple.⁸ Countable assets include bank accounts, stocks, and bonds. Your primary home, one vehicle, and personal belongings are generally exempt.

Spousal Protection for Long-Term Care

If one spouse enters a nursing facility or qualifies for home-based long-term care services while the other stays in the community, the at-home spouse can retain between $32,532 and $162,660 in countable assets as of January 2026, with the exact figure based on the couple’s combined resources at application.¹¹

Spend-Down for Income Slightly Over the Limit

Aged, blind, or disabled applicants with income just above the threshold can qualify through a spend-down. It functions like a deductible: you incur enough medical expenses in a month to pull your effective income under the limit, after which Medicaid picks up the rest for that period.¹² Spend-down does not apply to HIP or Hoosier Healthwise.

Residency, Citizenship, and Social Security Number

Every program requires you to live in Indiana with a fixed home address and to meet federal citizenship or immigration rules. U.S. citizens, U.S. nationals, and qualified non-citizens such as lawful permanent residents who have completed the five-year waiting period are eligible; refugees and asylees are exempt from that wait.¹³ Each person seeking coverage needs a valid Social Security number, or proof of having applied for one.¹⁴

If You Need Coverage Right Away

Presumptive eligibility (PE) provides temporary coverage based on basic income information while your full application is pending. Parents, children, and former foster youth receive full Hoosier Healthwise Package A services. Pregnant applicants receive prenatal care, lab work, prescriptions, and transportation, though not labor and delivery. Adults who would qualify for HIP receive HIP Basic services with copayments.¹⁵ PE ends if you don’t complete the full application or if that application is denied.

Medicaid can also cover medical bills from up to three months before your application date, provided you were eligible during those months. Starting January 1, 2027, federal law shortens that window to one month for HIP-eligible adults and two months for children, people 65 and older, and people with disabilities, so applying promptly matters.

How to Apply

You can apply online through the FSSA Benefits Portal, in person at a Division of Family Resources office, by mail or fax, or by phone.¹⁶ The form is the Indiana Application for Health Coverage (State Form 53043). Have these on hand:

A government-issued photo ID
Proof of citizenship or immigration status (birth certificate, U.S. passport, or green card)
Income records: recent pay stubs, W-2s, federal tax returns, or SSA award letters
Social Security numbers for every household member on the application

A decision typically arrives within 45 to 90 days, depending on the program.¹⁷ A caseworker may call to schedule an interview or request documents; responding quickly keeps the application from being denied for failure to cooperate.

Keeping Coverage: Annual Renewal

Eligibility is rechecked at least once every 12 months. The state first tries to verify continued eligibility from tax and wage records. If that confirms you still qualify, you’ll get a notice that your coverage renewed automatically. If not, you’ll receive a prepopulated form and at least 30 days to return it. Miss that deadline and coverage can be terminated, but if you return the form within 90 days of losing coverage, the state must reconsider your eligibility without a new application.¹⁸

If You’re Denied

You can request a fair hearing if your application is denied or your benefits are reduced or ended. Indiana must send written notice at least 10 days before an adverse action takes effect, with instructions on how to appeal.¹⁸ The deadline to file is on the notice and varies, so read it carefully.¹⁹ If you file before the effective date of the action, your existing coverage generally continues until the hearing is resolved. Appeals go through the Indiana Office of Administrative Law Proceedings.

Long-Term Care: Look-Back and Estate Recovery

These two rules apply only if you’re applying for long-term care services like nursing home coverage or home and community-based waivers. They do not affect HIP, Hoosier Healthwise, or standard community-based Medicaid.

For long-term care applicants, Indiana reviews financial transactions from the five years before your application. Assets you gave away or sold below market value during that look-back period can trigger a penalty period of ineligibility, calculated by dividing the transferred value by the average monthly nursing home cost.¹²

After a beneficiary age 55 or older dies, federal law requires the state to seek repayment from the estate for nursing facility services, home and community-based services, and related hospital and prescription costs. Indiana cannot recover if the deceased leaves a surviving spouse, a child under 21, or a blind or disabled child. The state must also offer an undue hardship waiver, and it cannot place a lien on your home during your life if your spouse, a child under 21, a disabled child, or a sibling with an equity interest lives there.²⁰ If you own a home you want to pass on, this is worth understanding before you apply for long-term care coverage.

1
IN.gov. Healthy Indiana Plan
2
IN.gov. Am I Eligible
3
IN.gov. Hoosier Healthwise
4
IN.gov. Aged Blind and Disabled
5
IN.gov. MEDWorks Facts Sheet
6
IN.gov. Overview of MAGI Methodology and Updates to the Medicaid Hierarchy
7
HHS. 2026 Poverty Guidelines
8
IN.gov. Indiana Medicaid Eligibility Guide
9
IN.gov. POWER Accounts
10
IN.gov. Hoosier Healthwise Brochure
11
IN.gov. Spousal Impoverishment Protection Law
12
Medicaid.gov. Eligibility Policy
13
HealthCare.gov. Health Coverage for Lawfully Present Immigrants
14
Medicaid.gov. Eligibility for Non-Citizens in Medicaid and CHIP
15
IN.gov. Presumptive Eligibility
16
IN.gov. Apply for Coverage
17
IN.gov. Health Coverage
18
Medicaid.gov. Overview: Medicaid and CHIP Eligibility Renewals
19
IN.gov. Resources for FSSA Appeals
20
Medicaid.gov. Estate Recovery