Indiana long-term care insurance: cost & coverage

Who regulates long-term care insurance in Indiana

Long-term care insurance policies sold in Indiana are regulated by the Indiana Department of Insurance. If you have a complaint about an agent, carrier, or policy, you can file it with the regulator directly.

What long-term care costs in Indiana

Median assisted living cost in Indiana vs. the national median:

Source: SeniorLiving.org median assisted living costs, 2026. See costs for all 50 states for the full table.

What each type of care costs in Indiana

Assisted living is only one of the settings people use. Median monthly costs across the main care types in Indiana:

Source: SeniorLiving.org Cost of Care Research (2026)

Indiana's LTC Partnership program

Indiana has an active LTC Partnership program. Indiana's Partnership program, enacted in 1987 and launched in 1993, pre-dates the 2005 DRA expansion, and offers both dollar-for-dollar and total-asset protection options.

A Partnership-qualified policy lets you keep an extra dollar of assets, protected from Medicaid spend-down, for every dollar your policy pays out in benefits — see the note above for this state's current status. Learn more about how Partnership programs work.

How Indiana treats LTC premiums at tax time

Indiana is one of the few states that gives long-term care insurance a break of its own — but only for its own Partnership policies. If you pay premiums on an Indiana Partnership long-term care policy, you may deduct the full amount paid during the year on Form IT-40, Schedule 2, line 11, entering deduction code 608. There is no dollar cap; the deduction equals the premiums paid for you and your spouse. A policy qualifies only if it carries the Indiana Long-Term Care program Medicaid asset-protection box on its outline of coverage, application, or front page — an ordinary long-term care policy earns nothing here. Filing married-separately, you cannot deduct premiums paid by or for your spouse.

Source: Indiana Department of Revenue, IT-40 Booklet 2025 (2025)

This is general information, not tax advice. Confirm your own situation with a tax professional licensed in Indiana.

Medicaid long-term care in Indiana

Indiana Medicaid is administered by the FSSA Office of Medicaid Policy and Planning, and Indiana PathWays for Aging is its managed-care program for members 60 and older who need long-term services and supports. The financial tests are severe: $2,000 in countable resources for a single applicant, a $52 monthly personal-needs allowance out of your income, a five-year look-back on gifts, and no long-term care coverage if your home equity tops $752,000 and no spouse or dependent child lives there. An Indiana Partnership policy bends both ends of that. At application, Indiana disregards the resources your policy protected — dollar-for-dollar, or every countable dollar with total asset protection — for your lifetime and your spouse's. And FSSA's estate recovery program cannot claim assets an Indiana Partnership policy protected.

Source: Indiana Family and Social Services Administration, Office of Medicaid Policy and Planning, Indiana Health Coverage Program Policy Manual, Chapter 3000 — Eligibility Standards (2026)

Other Indiana long-term care programs

• Indiana State Health Insurance Assistance Program (SHIP). Indiana's State Health Insurance Assistance Program, SHIP, is run by the Indiana Department of Insurance and the federal Administration for Community Living. It is free, impartial counseling for people with Medicare, delivered by volunteer counselors who complete an intensive four-day training course and are certified by the department. SHIP's help is not limited to Medicare: it explicitly shows consumers how to evaluate the long-term care insurance policies currently available, and counselors will compare and even help you enroll in plans one-on-one, in person, by phone or virtually. Counselors offer free and objective assistance in complete confidence. The central office number is 800-452-4800.
• INconnect Alliance (Indiana's Area Agencies on Aging / ADRCs). Indiana delivers its Older Americans Act services through the INconnect Alliance, the state's network of Area Agencies on Aging that double as Aging and Disability Resource Centers. Fifteen agencies cover sixteen planning and service areas, and one toll-free number, 800-713-9023, reaches the one nearest you. They provide case management, information and referrals, and they arrange adult day services, attendant care, homemaker help, home-delivered and congregate meals, respite, transportation, environmental modifications and personal emergency response systems. Older Americans Act programs generally require only that the recipient be over 60. There are no income limits and no asset limits; participants are asked to contribute voluntarily as they are able. Funding, however, is extremely limited.
• Indiana Long-Term Care Ombudsman Program. Indiana's Long-Term Care Ombudsman Program advocates for residents of long-term care facilities, which includes nursing facilities and licensed assisted living facilities. Certified ombudsmen receive complaints about quality of care, use of chemical or physical restraints, transfers and discharges, abuse and other aspects of resident rights, and work with you, your family and facility staff to resolve them. They will negotiate on your behalf, help you establish a resident or family council, and attend an involuntary discharge hearing with you. The service is free and confidential, and anyone concerned about a resident's welfare may call, not just the resident. The statewide information and complaint line is 800-622-4484.

How to compare quotes in Indiana

• Confirm any agent or carrier you talk to is currently licensed to sell in Indiana — the Indiana Department of Insurance can confirm licensing status.
• Ask which products a carrier is actively writing in Indiana today — availability changes state by state and year to year. See carriers we compare.
• If a Partnership-qualified policy matters to you, confirm with the carrier or agent whether a policy is currently certified as Partnership-qualified in Indiana — see this state's Partnership status above.
• Compare traditional and hybrid options side by side — see traditional vs. hybrid coverage.
• Get quotes from more than one carrier; pricing for the same coverage can vary significantly.

Please note: Regulator names, complaint channels, and Partnership-program status can change. Confirm current details with the Indiana Department of Insurance or a licensed agent before making any decision. LongTermCareInsurance411 is not a government agency and does not administer Indiana's insurance regulations or Medicaid program.

Last updated: August 22, 2026