Understanding the 2025 Indiana Medicaid Spousal Inequality Rules for Seniors
As we age, the need for long term care increases, especially in married couples, because the odds of one of you needing care are doubled. Costs of care can be high, and often exceed what families can afford to pay. Medicaid is a valuable resource for covering long-term care expenses, but it has strict rules regarding income and assets. The rules can be a source of concern for married couples, who worry that the spouse at home (also known as the “community partner”) may not have enough resources. The Indianapolis attorneys at Frank&Kraft explain that Indiana Medicaid has spousal poverty rules to protect the community spouse. Private insurance policies also exclude this type of care. The financial burden of nursing home care can be heavy, with Indiana’s average annual cost of $120,000 (as at 2024). Medicaid does cover some of these costs, but the program is based on need. Indiana’s spousal impoverishment rules kick in to ensure that the community spouse is not left in financial distress. The Community Spouse Resource Allowance is a vital part of Indiana’s efforts to prevent impoverishment for the spouse who is not applying. The CSRA outlines the amount of countable resources that the community spouse can retain while still allowing for the other spouse to be eligible for Medicaid. If the non applicant’s half of assets is less than $31,584, the non applicant can keep 100% of assets up to $31,584. This provides a minimum level of financial stability to the spouse who is still living in the community. Countable assets include checking and saving accounts, CDs and investment accounts. However, not all assets are counted. Under certain conditions, the primary residence of a couple, one vehicle, and most personal belongings may not be counted. The family home is protected as long as the community spouse continues living there. Indiana will impose a $730,000 home equity limit by 2025 if no spouse or dependents live in the home. Exceeding this limit may jeopardize Medicaid eligibility for the applicant spouse.
Monthly Maintenance Needs Allowance (MMNA) in Indiana
Another vital protection for the community spouse is the Monthly Maintenance Needs Allowance (MMNA), also known in Indiana as the Minimum Monthly Maintenance Needs Allowance (MMMNA). This provision ensures the community spouse does not have too little income for essential living expenses. If the community spouse does not earn this amount, a portion of their institutionalized spouse’s monthly income may be used to help them meet the threshold. This transfer allows the community spouse to continue paying for essentials like housing, utilities and food, without falling into poverty because of their spouse’s medical requirements. In Indiana, the spouse who is not applying for the Spousal Allowance can increase it if their housing costs and utility costs are higher than a “shelter-standard” of $767 per month (effective from 7/1/24 to 6/30/25). A Spousal Income Allowance, however, cannot push a non-applicant’s total monthly income over $3,948.
Why Spousal Impoverishment Rules Matter
Without these protections, many healthy spouses would be left in dire financial circumstances, potentially forced to spend down nearly all the couple’s resources to qualify their spouse for long-term care coverage. For more information about the Indiana Medicaid Spousal Impoundment Rules, please join our FREE seminar. If you have any questions about the Indiana Medicaid spousal poverty rules for 2025, please contact the experienced Indianapolis Medicaid planning lawyers at
Frank & Kraft
or call
(317) 684-500
in order to schedule an appointment. Read More!
Latest Posts by Paul A. Kraft Estate Planning Attorney
