Indiana Medicaid income limits
Last verified: June 2026
Verify current limits with Indiana Medicaid (Healthy Indiana Plan)
Indiana uses MAGI-based income rules for HIP and Hoosier Healthwise — verify current limits at in.gov/medicaid
Indiana Medicaid income limits by coverage group (2026)
Indiana uses MAGI (Modified Adjusted Gross Income) methodology for HIP and Hoosier Healthwise income determinations. MAGI counts most household income including wages, self-employment, unemployment benefits, and Social Security income — but not things like child support received, gifts, or veterans' benefits. There is no asset test for MAGI-based programs.
| Coverage group | FPL % | Annual limit (household of 1) | Annual limit (household of 4) |
|---|---|---|---|
| HIP (adults 19–64, no disability) | 138% FPL | ~$20,783/yr | ~$43,056/yr |
| Hoosier Healthwise — children (birth–19) | Up to 250% FPL | ~$37,650/yr | ~$78,000/yr |
| Pregnant women | 208% FPL | ~$31,325/yr | ~$64,896/yr |
| Hoosier Care Connect (SSI / aged / blind / disabled) | Separate rules | Varies | N/A |
Source: FSSA Indiana Medicaid eligibility guidance; 2026 HHS Federal Poverty Level guidelines. Annual figures are approximations for general reference — FSSA uses monthly thresholds internally. Verify at in.gov/medicaid or call 800-457-4584. Non-MAGI programs (Hoosier Care Connect) use separate income and asset rules.
HIP Plus vs. HIP Basic: how income affects your tier
Indiana's HIP program has two coverage tiers. Both cover the same basic medical services, but HIP Plus adds dental, vision, and other enhanced benefits in exchange for monthly POWER account contributions. HIP Basic provides more limited coverage for members who do not make contributions.
| Income level | Contribution required? | Default tier |
|---|---|---|
| Below 100% FPL | No — contribution is voluntary | HIP Plus (with voluntary contribution) or HIP Basic |
| 100% to 138% FPL | Yes — required for HIP Plus | HIP Basic if contributions not made |
POWER account contributions are set at approximately 2% of annual household income, with a monthly floor and ceiling. Members who miss three consecutive monthly contributions can be locked out of HIP Plus for a period and moved to HIP Basic. This lock-out provision is part of Indiana's Section 1115 waiver terms, approved by CMS.
No asset test for HIP and Hoosier Healthwise
MAGI-based Indiana Medicaid programs — HIP, Hoosier Healthwise, and the pregnant women's category — have no asset test. Savings accounts, vehicles, and home equity are not counted toward eligibility. This is the same rule applied in all ACA expansion and CHIP programs.
Hoosier Care Connect — the program for aged, blind, and disabled individuals who do not qualify under MAGI rules — uses separate non-MAGI income and asset rules. These rules are more complex and generally include a $2,000 asset limit for single applicants. Contact FSSA at 800-457-4584 for specific figures for this program.
How Medicaid income limits work
Medicaid eligibility is tied to the Federal Poverty Level (FPL), a measure the Department of Health and Human Services updates each January. States set their income limits as a percentage of FPL — so when FPL increases, the dollar thresholds for Medicaid also shift.
The Affordable Care Act established a standard income methodology called Modified Adjusted Gross Income (MAGI) for most Medicaid applicants. Under MAGI, the agency counts wages, salaries, self-employment income, Social Security benefits, and most other taxable income. Assets — a savings account, vehicle, home — are not counted for MAGI-based programs. That changed with the ACA and applies in all states.
States that expanded Medicaid under the ACA cover most adults at or below 138% FPL. In non-expansion states, income limits for adults without dependent children are far lower — sometimes as low as a few hundred dollars per month — or eligibility for that category simply doesn't exist.
These are federal guidelines — state limits may differ
What counts as income under MAGI
MAGI (Modified Adjusted Gross Income) is the income standard for most Medicaid applicants — children, adults under 65, pregnant women, and parents. It includes wages, salary, tips, self-employment income, unemployment benefits, Social Security retirement and disability benefits (SSDI), and most other taxable income.
It does not count child support received, gifts, loans, inheritances that are not generating income, or Supplemental Security Income (SSI) payments. One key MAGI rule: the ACA added a 5% FPL income disregard for most adults, which effectively raises the usable threshold by that amount. So a state with a 133% FPL limit effectively covers adults to about 138% FPL after the disregard.
Assets — a bank account, car, or home — are not counted for MAGI-based programs. That's a major difference from old-law Medicaid, where asset tests were common. If you previously didn't qualify because of assets, your eligibility may have changed after the ACA.
Asset limits and long-term care Medicaid
MAGI-based programs have no asset test. But Medicaid programs that cover long-term care — nursing home care, home and community-based services for seniors — use the old income and asset methodology, which does include asset limits.
Asset limits for long-term care Medicaid vary by state and are updated periodically. Generally, countable assets above the limit must be spent down before an applicant qualifies. Exempt assets — the primary home (in most circumstances), one vehicle, and certain personal property — are not counted.
Specific asset limits for Indiana's long-term care programs are on the seniors and long-term care page. The thresholds change, so verify current figures with Indiana Medicaid (Healthy Indiana Plan) directly.