Paying for Home Care in Indiana: Private Pay, Long-Term Care Insurance and Other Options

If you are trying to work out how to pay for home care in Indiana, the short answer is that most families use a combination: their own savings or income, long-term care insurance if they have it, veterans benefits if they qualify, and state programs for those who meet the rules. Medicare helps with short-term skilled home health, but not with ongoing daily help. This guide walks through each option so you can see which ones might fit your family in Indianapolis and central Indiana.

How to pay for home care in Indiana: start with the cost

Before comparing payment options, estimate how many hours of help your loved one needs each week. A few hours of companionship and errands is a very different budget from daily personal care or overnight support.

For a rough benchmark, Care.com’s Indianapolis home care cost page lists an average starting rate of $21.29 per hour as of October 2026. Agency rates vary by the level of care, the length of each visit, weekends and holidays, and whether care is overnight. Use the benchmark to frame a conversation, then ask agencies for their actual rates in writing.

A simple worksheet helps:

• Which tasks need help (bathing, dressing, meals, medication reminders, housekeeping, transportation, supervision)?
• What times of day are hardest?
• How many hours can family realistically cover, without burning out?
• Is any skilled nursing or therapy needed, which might qualify for Medicare home health?

Private pay: the most flexible option

Most families pay for non-medical home care privately, using income, savings, retirement accounts, or help from adult children. Private pay is simple: there is no application or waiting list, you choose the provider, and you can adjust hours as needs change.

Ways families make private pay more manageable:

• Share costs among siblings. Put the agreement in writing so everyone knows what they are contributing.
• Use home equity carefully. Some families sell a home, rent it out, or explore a reverse mortgage. Talk to a financial advisor or elder law attorney first, because these choices can affect taxes and future Medicaid eligibility.
• Ask about tax treatment. In some situations, care costs may count as deductible medical expenses or qualify for a dependent care credit. A tax professional can tell you whether that applies.
• Right-size the schedule. Focusing paid hours on the hardest times of day, such as mornings and bedtime, can stretch a budget.

Long-term care insurance

If your parent bought a long-term care insurance policy, now is the time to find it. Many policies pay for in-home care once the person needs help with a certain number of activities of daily living, or has cognitive impairment such as dementia.

When you review a policy, look for:

• Elimination period: the number of days you pay before benefits start
• Daily or monthly benefit amount and the total lifetime maximum
• Home care rules: whether care must come from a licensed agency, and what documentation the insurer needs
• Claim process: call the insurer early, because assessments and paperwork take time

Indiana also has a Long Term Care Insurance Partnership program. Partnership policies include state-provided asset protection, which lets a policyholder keep some savings if the policy runs out and they later apply for Medicaid. If your parent’s policy is a Partnership policy, ask the insurer or a financial advisor how that protection works for them.

Veterans benefits

Veterans and surviving spouses who receive a VA pension may qualify for an added monthly payment called Aid and Attendance if they need help with daily activities, or Housebound benefits if a permanent disability keeps them at home most of the time. You cannot receive both at once. The VA also offers some in-home care programs through VA health care.

A county veterans service officer can help with applications at no cost; contact the office in your loved one’s county.

Indiana programs for older adults

CHOICE

Indiana’s CHOICE program (Community and Home Options to Institutional Care for the Elderly and Disabled) is run through the state’s Area Agencies on Aging. According to the state, applicants must be at least 60 or have a disability, and be at risk of losing independence. There is no income limit, but assets cannot exceed $250,000 (with some exclusions), and a cost-share formula may ask higher-income applicants to pay part of their services. CHOICE cannot be used when Medicare or Medicaid would meet the need. In the Indianapolis region, CICOA Aging and In-Home Solutions is the Area Agency on Aging that handles applications.

Medicaid waivers: PathWays for Aging and Health and Wellness

On July 1, 2024, Indiana ended the Aged and Disabled Waiver. Medicaid members aged 60 and older who need a nursing facility level of care are now served through the PathWays for Aging waiver, and people 59 and younger through the Health and Wellness waiver. These programs can fund in-home services for those who meet financial and medical rules. Eligibility is complex, so start with your Area Agency on Aging or the Indiana Family and Social Services Administration.

Programs for people with developmental disabilities

For adults with intellectual or developmental disabilities, Indiana’s Family Supports and Community Integration and Habilitation (CIH) waivers fund services such as day habilitation, respite and residential support. Both waivers reached capacity in December 2025, and new invitations now go to a waiting list, so it is worth getting on the list early. Our article What Is BDDS and How Can It Help Your Family explains the process.

What Medicare does and does not pay for

Medicare pays for part-time skilled home health care for homebound people with a doctor’s order. It does not pay for custodial care alone, homemaker services or 24-hour care. We cover the details in our post on navigating Medicare coverage for home health services.

Putting it together with Aken

Aken Home Health and Home Care provides private-pay home care services across Indianapolis and central Indiana, including personal care assistance, companion care, homemaking and 24-hour care, along with home health and BDDS waiver services. Every family’s funding picture is different, and deciding how to pay for home care in Indiana is easier with someone to talk it through. Call us to talk through your options, and we can help you plan a schedule that fits both your loved one’s needs and your budget.

Frequently asked questions

Does Indiana Medicaid pay for home care?

Indiana Medicaid can fund in-home services through waiver programs such as PathWays for Aging and Health and Wellness for people who meet financial and level-of-care requirements. Regular Medicaid coverage alone generally does not pay for ongoing non-medical care.

Can I get paid to take care of my parent in Indiana?

Some Indiana waiver programs allow certain family members to be paid caregivers, with rules and limits. Veterans programs have options too. Ask your Area Agency on Aging or case manager what applies.

Is home care tax deductible?

Sometimes. Care for a chronically ill person may count as a medical expense under IRS rules. A tax professional can review your situation.

What is the cheapest way to get home care?

Combining a smaller number of paid hours with family help, focusing paid hours on the hardest parts of the day, and applying for programs your loved one may qualify for is usually the most affordable approach.

Aken Home Health and Home Care serves Indianapolis and surrounding counties. Call our office at 317-734-3934 (Mon to Fri, 8am to 5pm) or our 24/7 line at 574-320-4705, or request a free consultation.