Aging is part of life. You need to have a plan in place that effectively addresses the risks and challenges that come with getting older. Among other things, that includes creating a long-term care strategy. Medicaid is a critical resource for many seniors who need help covering the cost of long-term care. However, navigating the program’s complex rules and strict eligibility requirements can be overwhelming. Even seemingly small errors can cause big problems. At White & Jocham, we are proud to be leaders in elder law, including long-term care planning. Here, our Indiana elder law attorney provides a comprehensive guide to understanding Medicaid.
What is Elder Law?
As defined by the American Bar Association (ABA), elder law is a specialized legal practice area that is centered on the unique legal needs of senior citizens and other aging Americans. To be clear, it is a relatively broad legal practice area. Among other things, elder law covers estate planning, long-term care planning, Medicaid eligibility, guardianship, elder abuse prevention, and retirement benefits. Elder law attorneys in Indiana are focused on helping their clients protect their assets, maintain autonomy, and access appropriate care and services. A personalized, proactive approach to elder law is a must.
The Challenge: Long-Term Care is Expensive in Indiana (Especially Nursing Homes)
Long-term care planning is one of the most important aspects of elder law. It is a big challenge to deal with, and all families should be prepared to address it head-on. Indeed, long-term care costs in Indiana can place a heavy financial burden on seniors and their families. According to data from Genworth, the average cost of a private room in a nursing home in Indiana exceeds $10,600 per month. Even assisted living facilities and in-home care services can add up very quickly. A person’s entire life savings could be depleted.
Unfortunately, Medicare offers limited coverage for long-term care, often only for short-term rehabilitation. As a result, many Indiana seniors must rely on Medicaid to access necessary support. Medicaid is not like Medicare, though. Not every person qualifies. It is a means-tested public program. Without a plan in place, families may be forced to spend down assets before Medicaid in Indiana steps up.
Understanding Medicaid: A Key Tool in Elder Law Planning
Medicaid is a joint federal and state program that provides health coverage to people with limited income and limited assets. For seniors, Medicaid is an essential tool. It can cover long-term care services that Medicare does not, including nursing home care and in-home assistance. However, eligibility is based on strict financial criteria. Applying for Medicaid without professional guidance can result in delays, denials, or a forced spend down. You need a proactive plan.
Asset and Income Limits: What Seniors Must Know About Medicaid
To qualify for Medicaid, seniors must meet specific income and asset limits. In Indiana, the monthly income limit is $2,523 (2025). Additionally, you cannot have more than $2,000 in countable financial assets. There is some good news: Not all assets are counted. Exempt resources may include a primary residence, a car, and personal belongings. Income, such as Social Security and pensions, is factored in but may be allocated toward the cost of care. An Indiana elder law attorney can help you and your family structure finances to preserve eligibility.
What Happens if Your Assets are Above the Medicaid Limit in Indiana?
If your assets are above Indiana’s Medicaid limit, you will not qualify for long-term care benefits until you “spend down” the excess. In other words, you must use your resources on approved expenses (medical bills, home improvements, or paying off debt) until your assets fall below the eligibility threshold. Simply giving money away or transferring assets for less than fair market value will not work because Medicaid has a five-year lookback rule for eligibility.
Trusts Can Be the Best Tool for Medicaid Planning (As Long as You are Proactive)
For Indiana seniors who are ready to plan ahead, an irrevocable trust can be one of the most effective tools for protecting assets while also preserving Medicaid eligibility. When assets are transferred into a properly structured Medicaid Asset Protection Trust, they are no longer considered countable for Medicaid purposes. However, that is only true after the five-year lookback period has passed.
That five-year look-back period is critical: Any transfers made within it may trigger a penalty, delaying benefits. Still, when it is done proactively (well in advance of needing care), a trust can shelter savings, property, and other assets from being spent down. An Indiana elder law attorney can help ensure the trust is drafted correctly, complies with state law and federal law, and supports broader estate planning goals. A proactive approach is a must for long-term care planning.
White & Jocham is a Leader in Elder Law in Indiana
Elder law is notoriously difficult to navigate. Medicaid planning is one of the more challenging issues. There are a lot of advantages to making a proactive plan. Further, there are a lot of potential pitfalls that you need to consider and avoid. At White & Jocham, we are proud to be leaders in elder law. Our team is ready to help you avoid the common pitfalls, including failing to properly take into account Medicaid’s five-year lookback period. Our team invests the time, the resources, and the attention to detail to help our clients find the best outcome for their specific situation. Your initial consultation with our Indiana elder law attorney is fully confidential and carries zero additional obligations.
Contact Our Indiana Elder Lawyer for a Confidential Consultation
At White & Jocham, our Indiana elder law attorney has the long-term care planning experience you can trust. If you have any questions about Medicaid planning or long-term care planning more generally, we can help. Contact us to set up your confidential initial consultation. With an office in Greenfield, we provide Medicaid planning services in Indianapolis and throughout the wider region, including in Marion County, Hendricks County, Hamilton County, and Hancock County.