Indiana Long Term Care Insurance
Learn about Indiana long term care insurance. Get expert guidance and free quotes from LTC Tree.
Roughly 70% of Americans turning 65 today will need some form of long-term services and supports during their lifetime, according to longtermcare.gov (a U.S. Department of Health and Human Services site). For Hoosiers planning retirement, that risk collides with one of the most consequential pieces of state policy in the country: Indiana was one of the four original pilot states for the federal Long-Term Care Partnership Program, which still shapes how residents pay for care today.
Indiana has roughly 1.1 million residents aged 65 and older, per the U.S. Census Bureau, and that population continues to grow each year. As more Hoosiers reach retirement, the gap between what Medicare covers (almost no custodial long-term care) and what families actually face (home care, assisted living, and nursing facility costs) becomes the central financial planning question.
What Long-Term Care Costs in Indiana
Indiana-specific cost data published on a non-commercial basis is limited, so the most defensible figures come from federal sources reporting national medians.
Per longtermcare.gov, national medians for ongoing custodial care run in the following ranges (data as of the latest HHS/ACL summary):
| Setting | National Cost Range |
|---|---|
| Home health aide (hourly) | Generally $25 to $35 per hour |
| Adult day services (per day) | Generally $80 to $100 per day |
| Assisted living (annual, private) | Often $55,000 to $75,000 per year |
| Nursing home (annual, private room) | Often well above $100,000 per year |
Indiana's care costs typically run modestly below the national median in many regions of the state and closer to the median in the Indianapolis-Carmel-Anderson metro area. Facility-level pricing for skilled nursing facilities certified by Medicare can be inspected via Medicare.gov's Care Compare tool. Because Indiana Medicaid reimbursement rates for nursing facilities do not reflect the private-pay rates a family would face, private rates remain the relevant planning number for most middle-income households.
Paying for Long-Term Care in Indiana
Most Hoosiers pay for long-term care through some combination of personal savings, long-term care insurance, and (eventually) Indiana Medicaid. Several state-specific rules drive how that math works.
Indiana Medicaid eligibility for long-term care. To qualify for institutional or Home- and Community-Based Services (HCBS) Medicaid in Indiana, a single applicant generally must have countable assets at or below the federal SSI-aligned threshold (commonly $2,000 for an individual), with separate rules for a community spouse. Income limits for institutional Medicaid follow the federal 300% of SSI standard. Current dollar figures, the home equity cap, spend-down rules, and spousal impoverishment protections are administered by the Indiana Family and Social Services Administration (FSSA) and published at the state Medicaid site linked below.
HCBS waivers and PathWays for Aging. Indiana operates HCBS waivers — including the Aged & Disabled Waiver and the Traumatic Brain Injury Waiver — that let qualifying residents receive long-term services in their home or community rather than in a nursing facility. In July 2024, FSSA also launched PathWays for Aging, a statewide Medicaid managed long-term services and supports (MLTSS) program for residents aged 60 and older. PathWays consolidates how Medicaid LTSS is delivered through contracted managed care entities and is described on the FSSA Medicaid site.
Indiana Long-Term Care Insurance Program (Partnership). Indiana was one of the original Partnership pilot states; the Indiana Long-Term Care Insurance Program (ILTCP) was authorized in 1987 and has been issuing Partnership-qualified policies since 1993. A Partnership-qualified policy provides dollar-for-dollar asset disregard: every dollar a Partnership policy pays out in benefits is a dollar of countable assets a policyholder may keep and still qualify for Indiana Medicaid (in addition to standard exemptions). Indiana also offers a "total asset" disregard option — unique to a small number of states — for policies that meet specific minimum daily benefit and inflation requirements. The state requires agents to complete dedicated Partnership training before selling these policies, and approved carriers and policy forms are listed by the ILTCP at the link below.
Local help. Free counseling on Medicaid, Medicare, and long-term care planning is available through Indiana's network of Area Agencies on Aging (the INconnect Alliance) and through the State Long-Term Care Ombudsman, both administered through FSSA's Division of Aging.
Long-Term Care Insurance Options for Indiana Residents
The traditional individual long-term care insurance market has consolidated since the early 2010s. Several names that dominated Indiana sales a decade ago — including some legacy carriers Hoosier shoppers may remember from old marketing — no longer issue new individual policies. The remaining market is split between traditional standalone LTC carriers and "hybrid" life-or-annuity policies with LTC riders.
For the current list of carriers and policies authorized for sale under the Indiana Partnership, refer to the Indiana Long-Term Care Insurance Program. Carriers may also sell non-Partnership LTC and hybrid products in Indiana that are filed with the Indiana Department of Insurance but not Partnership-certified; a licensed broker can confirm which filings are open to new applications at the time of your quote.
What Drives Your Indiana LTC Premium
Because Indiana's Partnership program rewards higher inflation protection and a meaningful daily benefit with stronger asset protection, the benefit-design choices you make have an outsized impact on price. The biggest premium drivers:
- Age and health status at the time of underwriting
- Daily or monthly benefit amount
- Benefit period (years of coverage)
- Inflation protection (3% compound, 5% compound, or none)
- Marital/partner discount (when both partners apply)
- Carrier and product type (traditional vs. hybrid)
Use the quote form on this page to see Indiana-specific rates from currently filed carriers.
Tax Benefits for Indiana Residents
State tax treatment. Indiana levies a flat state individual income tax (3.05% for tax year 2024, with statutory reductions scheduled in following years). For current rules on whether qualified long-term care insurance premiums are deductible from Indiana adjusted gross income, consult the Indiana Department of Revenue. Premium deductibility on Indiana returns has historically been narrower than the federal treatment, so do not assume the federal limits below carry through to your state return.
Federal treatment. Per IRS Revenue Procedure 2024-40 (Section 3.24), the 2025 age-based "eligible long-term care premium" limits — the maximum premium amount that counts as a medical expense for federal purposes — are:
| Age at End of Tax Year | 2025 Eligible Premium Limit |
|---|---|
| 40 or under | $480 |
| 41 through 50 | $900 |
| 51 through 60 | $1,800 |
| 61 through 70 | $4,810 |
| 71 and older | $6,020 |
These limits apply to tax-qualified long-term care insurance contracts. Benefits paid from a tax-qualified policy are generally received income-tax-free (subject to per diem caps for indemnity policies).
Putting It Together
Because Indiana is one of the few states with a true Partnership program — including a "total asset" disregard option for policies that meet the higher Partnership thresholds — the single most effective next step for most Hoosiers planning ahead is to compare Partnership-qualified quotes with non-Partnership and hybrid alternatives side by side. The quote form above pulls Indiana-filed rates from the carriers currently writing new business so you can see how each option fits your age, health, and asset-protection goals.
Disclaimer
This page is educational and general in nature. It is not a solicitation or offer of any specific insurance product, and it is not tax or legal advice. Long-term care insurance availability, pricing, underwriting, and product features vary by carrier, state, and applicant, and program rules can change. For personalized guidance, contact a licensed long-term care insurance specialist or your tax advisor. For the current list of carriers and policies authorized in Indiana, consult the Indiana Department of Insurance and the Indiana Long-Term Care Insurance Program.
Indiana Long Term Care Insurance FAQs
How much does long term care insurance cost in Indiana?
Premiums in Indiana depend on age at application, health, benefit amount, and inflation protection. Most Indiana residents pay between $1,500 and $4,500 per year for a comprehensive policy, and the cost is locked in when you apply. Applying earlier and in better health typically results in the lowest Indiana LTC insurance rates.
Does Indiana have a Long Term Care Partnership program?
Most states including Indiana participate in the federal/state Long Term Care Partnership program. A Partnership-qualified policy in Indiana lets you protect assets equal to the benefits your policy pays out if you ever need to apply for Medicaid, on top of the usual Medicaid asset limits. Ask your specialist whether a given carrier's policy is Partnership-certified in Indiana.
What does long term care insurance cover in Indiana?
A Indiana long term care policy typically reimburses the cost of care you receive when you cannot perform at least two activities of daily living, or when you have a cognitive impairment such as Alzheimer's. Covered care settings generally include home health care, adult daycare, assisted living, memory care, and skilled nursing facilities located in Indiana or anywhere in the U.S.
When should I buy long term care insurance in Indiana?
Most Indiana residents who buy LTC insurance do so in their mid-50s to mid-60s, before rates rise sharply and before health conditions make coverage harder to qualify for. Buying earlier locks in lower premiums for life, while waiting risks higher costs or being declined outright.
Is long term care insurance tax deductible in Indiana?
Yes — premiums for qualified long term care insurance policies are deductible as medical expenses on your federal return, up to IRS age-based limits that are indexed annually. Indiana may offer additional state tax credits or deductions for LTC premiums; your LTC Tree specialist can confirm the current rules that apply to residents of Indiana.
Which carriers offer long term care insurance in Indiana?
LTC Tree is an independent broker and shops every major carrier licensed in Indiana, including Mutual of Omaha, Nationwide, Securian, National Guardian Life, OneAmerica, Thrivent, Lincoln Financial, and others. Each Indiana applicant's situation is different — we run rates across carriers and present the best fit for your age, health, and budget.