Indiana Medicaid covers hundreds of thousands of residents through several programs, each with its own income rules. Whether you are a working adult, a parent, pregnant, a senior, or living with a disability, the eligibility thresholds changed on March 1, 2026, when Indiana updated its limits to reflect the new Federal Poverty Level (FPL) guidelines. This guide breaks down the 2026 income limits for every major Indiana Medicaid program, explains what counts as income, and walks you through how to apply.
Indiana Medicaid Programs Overview
Indiana runs Medicaid under a few distinct programs. Each serves a different population and has different rules.
- Healthy Indiana Plan (HIP): Covers adults ages 19 to 64 who are not eligible for Medicare and do not have access to affordable employer coverage.
- Hoosier Healthwise: Covers children up to age 19 and pregnant individuals.
- Traditional Medicaid / ABD Medicaid: Covers aged, blind, and disabled individuals, including seniors 65 and older.
- Hoosier Care Connect: Covers disabled adults under age 60 who do not qualify for Medicare.
- PathWays for Aging: Managed care program for adults 60 and older who need long-term services and supports.
Indiana expanded Medicaid under the Affordable Care Act, so most adults with income up to 138% FPL can qualify through HIP. If you are unsure which program fits your situation, use the free Benefits Navigator screener to check eligibility across all Indiana programs at once.
2026 Income Limits by Program
Indiana updates its Medicaid income limits on March 1 each year, not January 1. All figures below reflect the limits effective March 1, 2026.
Healthy Indiana Plan (HIP) - Adults 19 to 64
HIP covers non-disabled adults who earn up to 138% of the Federal Poverty Level. This is Indiana's Medicaid expansion program.
| Household Size | Monthly Income Limit | Annual Income Limit |
|---|
| 1 | $1,836 | $22,032 |
| 2 | $2,489 | $29,868 |
| 3 | $3,142 | $37,704 |
| 4 | $3,796 | $45,552 |
| 5 | $4,449 | $53,388 |
Income is counted before taxes. Gross income, not take-home pay, is what determines eligibility.
Hoosier Healthwise - Children (Up to Age 19)
Children under 19 can qualify with higher income limits than adults. The program covers doctor visits, hospital care, prescriptions, dental, and vision.
| Household Size | Monthly Income Limit | Annual Income Limit |
|---|
| 1 | $3,392 | $40,704 |
| 2 | $4,599 | $55,188 |
| 3 | $5,806 | $69,672 |
| 4 | $7,013 | $84,156 |
| 5 | $8,220 | $98,640 |
Children's limits are set at approximately 250% FPL, making Hoosier Healthwise available to many middle-income families whose children would otherwise be uninsured.
Hoosier Healthwise - Pregnant Individuals
Pregnant individuals qualify at a higher income threshold to ensure prenatal and postpartum coverage. Coverage extends through 60 days after delivery, with an option for extended postpartum coverage.
| Household Size | Monthly Income Limit | Annual Income Limit |
|---|
| 2 (mother + unborn) | $3,841 | $46,092 |
| 3 | $4,850 | $58,200 |
| 4 | $5,858 | $70,296 |
| 5 | $6,866 | $82,392 |
Note: The unborn child counts as a household member when calculating the income limit for pregnant individuals.
ABD Medicaid - Aged, Blind, and Disabled
Aged (65+), blind, and disabled individuals who qualify for Supplemental Security Income (SSI) are generally automatically enrolled. Those who do not receive SSI can still apply if income falls within these limits.
| Household Size | Monthly Income Limit | Annual Income Limit |
|---|
| 1 | $1,330 | $15,960 |
| 2 | $1,803 | $21,636 |
| 3 | $2,277 | $27,324 |
| 4 | $2,750 | $33,000 |
For individuals needing nursing home care or home and community-based waiver services, the income limit is higher at $2,982 per month for a single person. This allows more seniors to access long-term care through Medicaid rather than spending down all assets first.
Asset Limits
ABD Medicaid has a $2,000 asset limit for a single person and $3,000 for a married couple. HIP and Hoosier Healthwise have no asset test, so savings accounts and property do not affect eligibility for those programs.
What Counts as Income
Indiana counts most sources of income when determining Medicaid eligibility:
- Wages and salaries
- Self-employment income
- Social Security benefits (including SSDI and SSI)
- Pension and retirement income
- Rental income
- Unemployment compensation
- Alimony received
What generally does not count as income:
- Child support received (partially excluded in some calculations)
- Veterans benefits
- Foster care payments
- Income from Supplemental Security Income for children's programs
For MAGI-based programs (HIP and Hoosier Healthwise), Indiana uses Modified Adjusted Gross Income rules, which means the calculation aligns closely with how income is reported on federal tax returns.
HIP POWER Accounts: What Adult Members Need to Know
HIP has a unique feature called the Personal Wellness and Responsibility (POWER) account. Most adult HIP members are expected to make a small monthly contribution to this account, similar to a health savings account.
- HIP Plus: Members who contribute to their POWER account get dental and vision coverage and pay no copayments for most services. Monthly contributions are typically 2% of household income, which can be as low as $1 per month for the lowest income members.
- HIP Basic: Members who do not contribute still get core medical coverage but pay copayments at point of service and do not receive dental or vision benefits.
For members with income below 22% FPL, contributions are not required. Indiana's FSSA automatically places members in the appropriate tier based on income.
How to Apply for Indiana Medicaid in 2026
Option 1: Apply Online
The fastest way to apply is through the FSSA Benefits Portal at fssabenefits.in.gov. The portal lets you create an account, submit an application, upload documents, and check your status online. You can also apply for SNAP, TANF, and child care assistance through the same portal.
Option 2: Apply by Phone
Call the Indiana Medicaid helpline at 1-800-403-0864. Phone lines are open Monday through Friday, 8 a.m. to 4:30 p.m. Eastern time. A caseworker will walk you through the application and can help if you have questions about which program you qualify for.
Option 3: Apply in Person
You can visit your local Division of Family Resources (DFR) office. Indiana has DFR offices in every county. To find the nearest office, visit the Indiana FSSA office locator on their website or call the helpline.
Documents to Gather Before Applying
Having these documents ready speeds up the process:
- Proof of Indiana residency (utility bill, lease, or bank statement)
- Proof of identity (driver's license, state ID, or passport)
- Social Security numbers for all household members applying
- Proof of income: recent pay stubs, a self-employment profit/loss statement, or your most recent federal tax return
- Immigration documents if applicable (for qualified non-citizens)
What Happens After You Apply
Indiana must process most Medicaid applications within 45 days. Disability-related applications may take up to 90 days. If you are approved, coverage is typically retroactive to the first day of the month you applied, which means bills incurred while your application was pending may be covered.
If your application is denied, you have the right to appeal within 33 days of the denial notice. The appeal process is handled by the Indiana Family and Social Services Administration.
Indiana Medicaid and the Federal Poverty Level
The 2026 Federal Poverty Level guidelines, which took effect January 1, 2026, form the basis for Medicaid income calculations. Indiana applies these starting March 1, 2026. Here are the base 2026 FPL figures Indiana uses:
| Household Size | 100% FPL (Annual) | 138% FPL (Annual) |
|---|
| 1 | $15,060 | $20,783 |
| 2 | $20,440 | $28,207 |
| 3 | $25,820 | $35,632 |
| 4 | $31,200 | $43,056 |
| 5 | $36,580 | $50,480 |
Indiana's HIP program covers adults up to 138% FPL. Hoosier Healthwise for children extends to approximately 250% FPL, and pregnant individuals qualify at approximately 213% FPL.
Who Does Not Qualify for Indiana Medicaid
Certain groups are excluded from Indiana Medicaid regardless of income:
- Adults ages 19 to 64 with income above 138% FPL (they may qualify for ACA marketplace subsidies instead)
- Undocumented immigrants (limited emergency Medicaid may apply)
- People who are incarcerated (except for 30 days before release in some cases)
- Non-citizens who have not met the five-year waiting period (with some exceptions for refugees and other humanitarian categories)
If your income is above the Medicaid limit, you may still qualify for significant ACA premium subsidies through the federal marketplace. Use the Benefits Navigator screener to check both Medicaid and ACA subsidy eligibility at once.
Changes and Updates for 2026
The main update for 2026 is the income limit adjustment tied to the new FPL. Indiana did not make major structural changes to the HIP or Hoosier Healthwise programs for 2026. The POWER account structure remains in place for HIP adults. Postpartum coverage for pregnant individuals continues at 12 months after delivery, an extension that Indiana adopted after the American Rescue Plan Act.
One area to watch: federal funding discussions in Congress could affect Medicaid expansion funding. As of early 2026, no changes to expansion status have been enacted in Indiana.
For more information about benefits available to Indiana residents, visit the Indiana state benefits page.
Frequently Asked Questions
What is the income limit for Indiana Medicaid in 2026?
It depends on which program you are applying for. For the Healthy Indiana Plan (adults 19 to 64), the limit is $1,836 per month for a single person. For Hoosier Healthwise (children), a single-child household can have income up to $3,392 per month. Pregnant individuals qualify up to $3,841 per month for a household of two. Aged, blind, and disabled adults qualify up to $1,330 per month.
When did Indiana update its 2026 Medicaid income limits?
Indiana updated its Medicaid income limits on March 1, 2026. Indiana is one of a few states that aligns its Medicaid income limits to the FPL update in March rather than January. Applications processed before March 1 use the prior year's limits.
Does Indiana Medicaid check assets in 2026?
Only for ABD Medicaid (aged, blind, and disabled). The asset limit is $2,000 for a single person and $3,000 for a married couple. HIP and Hoosier Healthwise have no asset test, so savings and property do not count.
Can I apply for Indiana Medicaid if I just moved to Indiana?
Yes. You must currently live in Indiana with the intent to remain. You do not need to have lived there for a minimum period before applying. You will need to provide proof of Indiana residency such as a lease, utility bill, or bank statement.
What is the Healthy Indiana Plan (HIP)?
HIP is Indiana's Medicaid expansion program for adults ages 19 to 64 who are not pregnant and do not qualify for Medicare. It covers doctor visits, hospital care, mental health services, prescriptions, and more. Most members contribute to a POWER account; those who contribute receive dental and vision coverage with no copayments.
How long does it take to get approved for Indiana Medicaid?
Most applications are processed within 45 days. Applications involving a disability determination can take up to 90 days. If you are denied, you have 33 days to file an appeal.
What if my income is too high for Medicaid?
If your income is above the HIP limit (138% FPL), you may qualify for subsidized health insurance through the ACA Marketplace. Subsidies are available for incomes between 100% and 400% FPL, and in some cases up to higher levels for lower-cost benchmark plans. Use the free screener at benefitsusa.org to find out what you qualify for.
Is Medicaid the same as the Healthy Indiana Plan?
HIP is Indiana's branded version of Medicaid expansion. It is Medicaid, administered by the Indiana Family and Social Services Administration through managed care organizations. The benefits are Medicaid benefits, but HIP has some unique features like the POWER account requirement.
Can undocumented immigrants get Indiana Medicaid?
Generally no. Full Medicaid coverage requires U.S. citizenship or qualified immigration status. Undocumented individuals may be eligible for Emergency Medicaid, which covers only emergency medical conditions.
Can I get Medicaid and Medicare at the same time in Indiana?
Yes. People who qualify for both programs are called dual eligibles. Indiana coordinates both programs so that Medicaid can cover costs that Medicare does not, including premiums, copays, and some long-term care services. ABD Medicaid is the most common path for dual eligibles.
