Did you know that if your income is higher than Medicaid’s income limits, you may not qualify for long-term care through Medicaid (also known as Medicaid nursing home coverage)? An experienced Medicaid attorney can help you determine if you will be eligible for this type of Medicaid based on your current assets and income, among other things. Continue reading to gain more background information about long-term care through Medicaid and how it may work for you.

What Is Medicaid Long-Term Care?

Long-term care involves various services to meet a person’s health or personal care needs over a long period, usually towards the end of the person’s life. The most common type of long-term care is personal care, which means daily activities, including bathing, dressing, grooming, using the toilet, eating, and moving around. It is tough to predict how much or what type of long-term care a person might need. Some things may increase the risk of needing long-term care, such as:

  • Age
  • Gender
  • Marital Status
  • Lifestyle
  • Health and Family History

Indiana Medicaid Long-Term Care Eligibility

In 2022, to be eligible for long-term care through Medicaid, you must:

  • Reside in Indiana and be a U.S. citizen or have proper immigration status
  • Be 65 years or older (or blind or disabled)
  • Meet specific medical requirements consistent with a nursing home level of care
  • Not exceed Medicaid’s income and asset limits.

Income Limitations

The following sources of income may be counted towards the income limit – Social Security benefits, Veteran’s benefits, pension payments, dividends from bonds and stocks, interest payments, retirement account distributions, and more. Medicaid applicants must provide documentation of their income with their Medicaid application.

Single Applicants

In 2022, the individual income limit for nursing home Medicaid in Indiana is $2,523 per month. The individual has to use all of their monthly income (aside from a $52 personal needs allowance and Medicare premiums) towards the cost of nursing home care.

Married Applicants

The monthly income limit for nursing home Medicaid is $2,523 per month per nursing home applicant’s spouse. The spouse applying for Medicaid has to use all of their monthly income (aside from a $52 personal needs allowance and Medicare premiums) towards the cost of nursing home care. There is no income limit for the non-applicant spouse.

What Happens If You Exceed The Medicaid Income Limit?

Qualified Income Trust

Suppose the applicant’s income exceeds Medicaid’s income limits. In that case, it does not automatically disqualify them from Medicaid eligibility, as they can establish a Qualified Income Trust (also called a Miller Trust) to hold their extra monthly income.

A Qualified Income Trust is an irrevocable trust. The funds from this trust can only be used for specified reasons, such as paying for the medical expenses of the Medicaid recipient. When the Medicaid recipient dies, funds held in the trust are used to reimburse Medicaid for expenses that Medicaid paid on the Medicaid recipient’s behalf. The remainder of the funds goes to the Medicaid recipient’s beneficiary.

Medicaid Attorney In Indiana

Are you or a loved one in need of long-term care through Medicaid? If so, feel free to speak with the experienced Medicaid planning attorneys at Hawkins Elder Law by calling (812) 268-8777 or contacting us online for a free consultation.

About The Authors

Jeff R. Hawkins and Jennifer J. Hawkins co-author this blog with Thomas E. Hynes, a lawyer admitted to practice in Pennsylvania, New Jersey and Florida who has a background in estate planning and elder law. Jeff and Jennifer are Trust & Estate Specialty Board Certified Indiana Trust & Estate Lawyers. They are also active members of the Indiana State Bar Association and the Indiana Chapter of the National Academy of Elder Law Attorneys (NAELA). Jeff is also a member of the Illinois NAELA Chapter.

Both Hawkins are admitted to practice law in Indiana, and Jeff Hawkins is admitted to practice law in Illinois.

Jeff is a Fellow of the American College of Trust and Estate Counsel and the Indiana Bar Foundation. He is also a member of the Illinois State Bar Association and he served as the 2014-15 President of the Indiana State Bar Association.

More Information

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