In the Midwestern state of Indiana, seniors make up about 16% of the 6.8 million residents. According to the most recent available data from the Alzheimer’s Association, approximately 110,000 Hoosiers aged 65 and over are living with Alzheimer’s, and over 11% of those aged 45 and over are experiencing cognitive decline. Alzheimer’s is currently the sixth-leading cause of death in the state.

Fortunately, Indiana is also home to a range of nonprofit agencies that help older adults with Alzheimer’s, along with top-ranking hospitals such as Indiana University Health Medical Center, which houses the Indiana Alzheimer’s Disease Research Center, and Franciscan Health Indianapolis. The state also offers budget-friendly residential dementia care services. On average, older adults pay an estimated $5,298 per month for this type of care, which is several hundred dollars less than the national average.  

Memory care can either be offered on its own in a community designed especially for those with dementia or Alzheimer’s, or, more often, it’s provided as a service in a separate wing of an assisted living facility. Memory care programs are designed specifically for those with memory impairment, and the facilities often coordinate social activities and schedules specifically for the needs of those living with Alzheimer’s or dementia.

This guide provides comprehensive information about memory care services in Indiana, including the cost of care, Medicaid coverage for services and nonprofit and government agencies that serve seniors and families affected by Alzheimer’s. 

The Cost of Memory Care in Indiana

Note: In Indiana, older adults obtain residential memory services in licensed assisted living facilities. Because these memory care has more extensive staff training requirements and specialized programming, dementia care typically costs 20-30% more than standard assisted living services. Nationwide memory care cost data isn’t available, so we calculate residential dementia care costs by adding 25% to the assisted living rates in the Genworth 2021 Cost of Care Survey.

Indiana is a moderately priced option for dementia care, with seniors paying $5,298 per month for services. This is several hundred dollars lower than the national rate of $5,625. In Kentucky, memory care rates are among the lowest in the country at $4,310. Seniors in Michigan pay $5,313, and in Illinois, rates are comparable to the national average at $5,610. Ohio is a relatively expensive place to obtain care, with memory care facilities charging $5,794 per month.  

$5298

Indiana

$5625

The United States

$4310

Kentucky

$5313

Michigan

$5610

Illinois

$5794

Ohio

Across surveyed cities in Indiana, Kokomo has the most economical memory care rates, with facilities charging an average of $4,063 for monthly services. In the South Bend area, care costs are a little more at $4,135, and in Muncie, fees are slightly higher at $4,619. In the Elkhart area, rates exceed the state average at $5,313, and in the capital city of Indianapolis, memory care facilities charge $5,598. Seniors in Columbus pay $5,826, and in Terre Haute, rates are the highest surveyed in the state at $6,185.  

$4063

Kokomo

$4135

South Bend Area

$4619

Muncie

$5313

Elkhart Area

$5598

Indianapolis

$5826

Columbus

$6185

Terre Haute

Memory care is among the costlier long-term senior care options in Indiana, with residents paying $5,298 for monthly services. The only care option with higher monthly fees is nursing home care, which costs an average of $7,270 for shared rooms and $8,700 for private rooms. Home-based care is moderately priced at $4,767 for basic home care and specialized home health care, and standard assisted living is several hundred dollars cheaper at $4,283. Adult day health care is the most economical senior care option at $1,733 per month.  

$5298

Memory Care

$4283

Assisted Living

$4767

Home Care

$4767

Home Health Care

$1733

Adult Day Health Care

$7270

Nursing Home (semiprivate)

$8700

Nursing Home (private)

Does Medicaid Cover Memory Care in Indiana?

Note: For the purposes of this guide, when we say “Memory Care” we are referring to memory care provided in a “social setting,” such as an Assisted Living Facility. This is the most common way to receive Memory Care and is the best fit for all but the frailest seniors. Sometimes the actual service of memory care can be provided in a Nursing Home (“medical setting”), so the financial assistance options will be very different. To learn more about the financial assistance options available for memory care provided in a nursing home, read our guide to Nursing Home Care in Indiana.

Indiana Medicaid provides health insurance coverage for qualifying Hoosiers. While it doesn’t cover memory care services directly, individuals may obtain services under the state’s Aged and Disabled Waiver. This waiver is for those with extensive care needs that qualify them for nursing home placement but who want to remain in a residential care facility. Seniors may obtain covered services in assisted living facilities that provide memory services, in adult day programs or in their own homes.  

What Memory Care Services Are Covered by Medicaid in Indiana? 

Indiana Medicaid’s A&D waiver covers a full range of services to meet the needs of those in long-term care. Many services under this waiver are consumer-directed, meaning individuals choose their own providers. The services an applicant receives under this waiver depend on their specific needs. Unlike Medicaid, which is an entitlement with guaranteed coverage for everyone who qualifies, the A&D waiver has a limited number of slots. Eligible individuals may be placed on a wait list until an opening is available. 

Memory Care Waiver Programs in Indiana 

Aging and Disabled Waiver 

The A&D Waiver covers services tailored to the needs of individuals, helping them remain in residential care and avoid nursing home placement for as long as possible. Enrollees are assigned case managers who review their needs and create service plans that determine what services the individual receives. Covered services include: 

  • Residential memory care services
  • Specialized medical equipment and supplies
  • In-home and out-of-home respite care
  • Nutritional supplements
  • Health care coordination
  • Community transition services to help an individual move out of a nursing home and into residential care
  • Attendant care
  • Adult day services 

Eligibility for the A&D Waiver is based on residency, whether the individual lives in a qualifying facility, their income and assets and their level of functioning. To apply for services, seniors or their responsible person can call the Division of Aging at (888) 673-0002 or their local Area Agency on Aging.

How to Know if You’re Eligible for Medicaid in Indiana 

To qualify for memory care coverage under the A&D waiver, applicants must meet financial guidelines. The waiver has a monthly income limit of $2,523 before taxes. This includes all income, including Social Security benefits, pension income and withdrawals from retirement accounts. Spouses applying for the waiver may each have a monthly income of up to this amount. If only one spouse is applying, only their income is considered. To ensure their spouse’s financial security, Indiana has a spousal impoverishment protection law in place.

Single applicants can have up to $2,000 in countable assets, including cash, checking and savings accounts, vacation properties and investments. Married applicants applying together can have joint assets up to $3,000. If one spouse is applying, up to $2,000 in countable assets can be in their name, and their spouse can have up to $137,400.  

2022 Medicaid Income Limits for Seniors in Indiana

Applicant 

Income Limit 

Asset Limit 

Single Applicant 

$2,523 per month 

$2,000 

Married (both spouses applying) 

$2,523 per month per spouse 

$3,000 

Married Applicant (one spouse applying) 

$2,523 per month (applicant) 

$2,000 (applicant) 

$137,400 (non-applicant) 

Seniors must meet other eligibility criteria to apply for the A&D waiver. These include: 

  • Residency: Applicants must be U.S. citizens or legal residents
  • Place of Residence: Applicants must be living in or willing to move to a memory care facility that accepts payment from the A&D waiver instead of in a nursing home
  • Functional: Applicants must need help with at least three activities of daily living, including mobility, toileting and personal grooming 

How to Apply for Medicaid in Indiana 

To apply for Medicaid and the A&D Waiver, seniors can fill out and submit a paper application at their local Division of Family Resources office. They may also apply online through the Indiana Family and Social Services Administration portal or through the Federal Health Insurance Marketplace, or they may call the Family and Social Services Administration at (800) 403-0864. Once the application and all necessary documentation are submitted, the approval process may take up to 90 days, though many who qualify are approved within a shorter time frame. To follow up on their application, individuals can call the FSSA or check their application online.  

Information You Will Need 

Applicants must submit all necessary documentation to apply for Medicaid. This includes: 

  • Proof of their name and date of birth
  • Social Security number
  • Proof of income, including public benefits
  • Bank statements showing the amount of money in checking and savings accounts
  • Documentation of other health insurance coverage, including Medicare or TRICARE 

How to Get Help Applying for Medicaid 

Seniors have access to several agencies that can help them obtain the Medicaid coverage they need to pay for memory care. The following resources help individuals apply for coverage, understand their benefits and resolve issues related to denied claims. 

Resource 

Contact 

Description 

(877) 647-5326

The MHS Ombudsman Program answers seniors’ questions regarding their Medicaid benefits, including coverage for medical services and residential memory care, finding a doctor and obtaining nonemergency medical transportation services. It also provides free assistance and advice for those experiencing problems with their coverage, such as denied claims and violations of members’ rights. The toll-free hotline is open daily, and all calls are confidential.

The American Council on Aging publishes information on eligibility requirements for Medicaid, including income and asset limits and how individuals can qualify if they exceed these limits. It also provides information on Medicaid planners, offering a table with the strengths and weaknesses of types of planners to help families choose the right planner for their needs. 

(800) 446-1993

The Indiana Attorney General’s Medicaid Fraud Control Unit enforces state Medicaid laws to help keep costs as low as possible. The agency fields and investigates reports of fraud, mistakes or abuse, including billing errors, charges for services not rendered and excessive services in memory care facilities. 

Does Medicare Cover Memory Care in Indiana?

The short answer is that no, Medicare does not cover the cost of memory care in Indiana. As was mentioned above, this doesn’t apply to Memory Care received in a Nursing Home. Since it is the most common to receive memory care in a “social setting” (such as an assisted living facility), Medicare won’t be a viable financial assistance option for most seniors who need Memory Care. However, Medicare will still cover things like approved medications, doctor visits, medical equipment, etc., just like it would if you lived at home.

For more information about when Medicare can be used to pay for Memory Care in a nursing home, and for Medicare-related resources, see our guide to Nursing Homes in Indiana.

Other Financial Assistance Options for Memory Care in Indiana

Seniors who are not eligible (due to location, financial situation, or other factors) for other types of financial assistance, do still have some options. See the table below for an overview of some of the most common ways to make Memory Care affordable.

How to Apply

How It Works

Aid and Attendance

Learn more and apply online at va.gov.

Veterans who receive a VA pension may also be eligible for the Aid and Attendance benefit, a monthly cash allowance that veterans may receive in addition to their standard pension amount. The benefit is intended for veterans in need of long-term care services and may be used towards paying for memory care.

Reverse Mortgages

Learn more about your options and how to apply at ftc.gov

If you own a home, you may be able to use a reverse mortgage to help pay for memory care. Reverse mortgages are loans that one can take out against the value of their home, essentially converting some of the home's equity into cash. Reverse mortgage loans need to be repaid with interest, typically within 12 months of receiving the loan.

Long-Term Care (LTC) Insurance

Learn more about Long-Term Care Insurance and how to apply for a policy at acl.gov.

Seniors who already have long-term care insurance may be able to use it to pay for memory care. Most policies cover at least a portion of the cost, but coverage depends on the specific policy terms. Note that older adults who are already in need of memory care are not typically eligible to sign up for a LTC insurance policy.

Free and Low-Cost Resources for Seniors in Indiana

Indiana is home to numerous government and nonprofit agencies that help seniors and families navigate memory care and community-based dementia services. Through the following resources, individuals can connect with support groups, options counselors and professionals who can help them address financial and legal issues related to dementia.

Resource 

Contact 

Description 

(317) 254-5465 

Dementia Friends Indiana is a statewide agency that provides support for seniors and families affected by Alzheimer’s. Through its Become a Friend in-person and virtual sessions, attendees can learn about dementia, get valuable information about the perspective of someone living with memory loss and develop communication skills to help them interact with a loved one with dementia. The organization also hosts memory cafes throughout the state.

(317) 274-8157 

The Indiana Alzheimer’s Disease Research Center operates out of Indiana University School of Medicine in Indianapolis. It conducts research and participates in community events such as annual caregiver symposiums and Walk to End Alzheimer’s events. Individuals with and without dementia can participate in the center's studies.

(800) 272-3900 

The Greater Indiana Chapter of the Alzheimer’s Association serves 73 counties within the state, providing access to information, support and services for over 100,000 Hoosier families affected by Alzheimer’s. Through this organization, seniors and families can participate in virtual and in-person early stage engagement activities such as the Learning Together program, Meet Me at IMA, Musical Moments and memory cafes. Individuals can call its free 24/7 helpline to receive emotional support and guidance on how to plan for long-term needs.

(317) 955-2790 

The Center for At-Risk Elders operates as a nonprofit public guardian for those who are unable to make decisions regarding their own care and who don’t have family members to fill the role. Its lawyer-led team of trained staff and volunteers advocate for seniors who are being financially abused, neglected or exploited.

(800) 452-4800

The State Health Insurance Assistance Program provides free, impartial health insurance options counseling for Medicare-eligible Hoosiers. Trained volunteers help older adults make informed decisions regarding their health insurance options by explaining Medicare benefits, comparing Medigap and Medicare Advantage plans and screening for eligibility for Medicare Savings Programs and Medicaid. Counselors can also help older adults review medical and long-term care bills, resolve billing errors and appeal denied health insurance claims.

(800) 986-3505 

Indiana has 16 Area Agencies on Aging, each with a designated service area. These nonprofit agencies serve those aged 60 and over through information, advocacy and direct and indirect services. Options counselors can help families make decisions regarding their loved ones’ long-term care options, and legal professionals can help individuals resolve issues related to dementia, including assigning guardianship and managing assets.

(800) 622-4484

The Indiana Long-Term Care Ombudsman visits memory care facilities in the state to ensure compliance with regulations. It also advocates for residents, ensuring their rights are honored and they receive the services in their care plans.

COVID-19 Rules for Memory Care in Indiana

The following information is based on research done on several government websites, including coronavirus.in.gov/long-term-care. These rules apply to nursing homes and other types of senior living facilities. We’ve most recently updated this data on 2/8/2022, but since COVID-19 is a rapidly evolving pandemic, contact your local senior living facility or Area Agency on Aging for more specific and up-to-date information.

Visitation Policies

Rules for Indiana Communities

Are loved ones allowed to visit to provide emotional support?

Yes (Conditions Apply)

Are relatives allowed to visit for end-of-life care?

Yes

Are residents required to quarantine after visiting with a loved one?

No

Are visitors required to wear PPE (including masks) in order to visit residents?

Yes

Are non-medical contractors (such as hairdressers and entertainers) allowed in senior living facilities?

Yes

Are visitors checked for elevated temperatures?

Yes

Are visitors required to answer questions about health, travel, and potential virus contact?

Yes

Outings & Social Activities

Rules for Indiana Communities

Are residents allowed to leave (errands, visiting family, etc.) for non-medical reasons?

Yes

Are residents who leave required to quarantine when they return?

No (Conditions Apply)

Are senior living communities required to cancel all group outings?

No

Are residents allowed to eat meals together in a common area?

Yes (Conditions Apply)

Are residents allowed to gather in common areas for group activites?

Yes (Conditions Apply)

COVID-19 Safety Measures for Staff and Residents

Rules for Indiana Communities

Are staff members regularly required to do a temperature check?

Yes

Are staff members regularly tested for COVID-19?

Yes (Conditions Apply)

Are staff members members regularly required to do a health and safety screening, including questions about travel, contact with positive cases, etc?

Yes

Are residents regularly screened for COVID-19 symptoms?

Yes

Are residents regularly checked for elevated temperatures?

Yes

Are residents regularly tested for COVID-19?

Yes (Conditions Apply)

Memory Care Laws and Regulations in Indiana

Indiana memory care facilities, including assisted living communities that offer memory care services, are regulated by the Indiana State Department of Health, Residential Care Facility Licensing Program. The following is a brief overview of the rules and regulations related to residential memory care in the state.

Memory Care Laws and Regulations in Indiana

Scope of Care

Facilities that provide room and board to five or more residents must offer activities and programming that is dignified, age-appropriate and designed to meet the unique needs of those living with memory loss. Facilities may not admit any resident with medical or behavioral needs that cannot be safely managed in a non-medical residential setting.

Care Plan Requirements

Each resident of a memory care facility must undergo a comprehensive pre-admission assessment to determine their suitability for placement, and a care plan must be written and reviewed at least once every six months.

Medication Management Requirements

Staff may assist with self-administration of prescription and over-the-counter medications, so long as those medications are used under order of a licensed physician. Licensed nursing staff may administer medication if permitted under their license.

Staff Screening Requirements

Facilities must have written procedures that outline the screening of prospective employees, and these procedures must consider personal and professional references as well as any criminal convictions that could negatively impact vulnerable residents.

Staff Training Requirements

Memory care facility administrators must complete a minimum of 40 hours continuing education related to residential care every two years, and directors of memory care units must have a minimum of 12 hours dementia-specific training.

Medicaid Coverage

Indiana’s Medicaid program covers the cost of residential memory care through the Home and Community-Based Aged and Disabled Waiver.

Reporting Abuse

Concerns regarding the physical, emotional or mental abuse of a long-term care resident should be reported to Indiana’s Long-Term Care Ombudsman by calling 1-800-622-4484. The Ombudsman also deals with concerns about the quality of care in memory care programs. Situations that pose an immediate threat to the health and safety of a senior should be reported to local law enforcement agencies.

Frequently Asked Questions

How Much Does Memory Care Cost in Indiana?

The average monthly cost of residential memory care in Indiana is $5,125. Actual costs may be higher or lower than the state average depending on the location, the amenities and which services are included or excluded.

Does Indiana Medicaid Pay for Memory Care?

Yes. Indiana’s Aged and Disabled Waiver, a Medicaid Home and Community-Based Services Waiver, includes memory care benefits for eligible Medicaid beneficiaries.

What Security Features Are Present in Memory Care Facilities?

Memory care facilities are designed to provide those living with Alzheimer’s disease and other forms of dementia with safe environments that decrease the risk of wandering. Common security features in residential memory care facilities include delayed-exit doors, electronic locks on exterior doors and motion-activated sensors that alert staff when a resident tries to exit the building. Many facilities also have enclosed outdoor areas such as fenced gardens or courtyards, and some programs use WanderGuard, a wireless monitoring system.

What Are Activities of Daily Living?

Activities of daily living are the daily tasks everyone needs to perform in order to maintain basic health and hygiene. Also known as ADLs, these tasks include getting dressed, using the toilet, bathing and moving about one’s home. ADLs also include taking prescription medications, installing and adjusting prosthetic devices and preparing meals.

What Types of Services Does Memory Care Provide?

Residential memory care communities provide room and board in a specially-designed facility or unit. Services also include 24-hour supervision and support from specially-trained caregivers, housekeeping and laundry service, transportation to medical appointments and daily social and recreational programming that meets the unique needs of those living with memory loss.