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Medicaid Waivers and Assisted Living

Indiana runs two separate programs for care inside a licensed community: the PathWays Waiver for care services, and RCAP for room and board.

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Medicaid waivers and assisted living in Indiana

Short answer

Indiana pairs two separate Medicaid programs for care inside a licensed Residential Care Facility: the PathWays Waiver, which pays for care services, and the Residential Care Assistance Program (RCAP), which pays for room and board. Neither one alone covers the full monthly bill.

PathWays Waiver

Launched July 1, 2024 as part of Indiana PathWays for Aging, the PathWays Waiver serves Hoosiers 60 and older through the Office of Medicaid Policy and Planning, with CICOA Aging & In-Home Solutions handling local case management. It covers personal/attendant care, structured family caregiving, respite, case management, home modifications and adult day services -- including care services inside a licensed community that holds a provider agreement. It does not cover room and board.

RCAP

The Residential Care Assistance Program is Indiana's Medicaid-funded room-and-board assistance for RCF residents, paid alongside PathWays waiver care services rather than instead of them. A facility can hold a PathWays agreement, an RCAP agreement, both, or neither -- ask specifically which apply before assuming a waiver covers the whole bill.

In-home-only services

Most Indianapolis-area seniors needing in-home-only care also use the PathWays Waiver rather than a separate program. Younger Hoosiers with disabilities (59 and under) instead use the Health and Wellness Waiver, administered by DDARS's Bureau of Disability Services -- generally not the program families searching this site will need.

Free help in your area. CICOA Aging & In-Home Solutions is the Area Agency on Aging covering all six counties this site serves. Read the full explanation →

Questions families ask

Is Indiana's Medicaid expansion (HIP) the same as long-term care Medicaid for seniors?

No. The Healthy Indiana Plan (HIP), Indiana's ACA expansion effective February 1, 2015, covers adults 19-64 based on income. Long-term-care Medicaid for seniors uses a separate, non-MAGI aged/blind/disabled eligibility pathway with different asset and income rules. The two are frequently and incorrectly conflated.

Is there a waitlist for Indiana's PathWays Waiver?

Yes, historically. At the program's July 2024 launch, 9,015 people were on the PathWays waiting list statewide out of 39,842 total slots. Current waitlist figures change; confirm today's status with CICOA Aging & In-Home Solutions, the Area Agency on Aging serving this region.

What is Indiana's Medicaid Estate Recovery Program?

Indiana's Medicaid Estate Recovery Program (MERP) recovers amounts Medicaid paid on a recipient's behalf after age 55, from probate and certain non-probate assets. As of July 1, 2025, the state has 9 months after death to file a claim, and recovery does not proceed while a spouse survives or a child is under 21, blind, or disabled.

What does assisted living cost in Indianapolis?

The CareScout Cost of Care Survey publishes a statewide Indiana median only -- $5,639 a month for a private one-bedroom in 2025 -- not an Indianapolis-specific figure. Local pricing likely differs from the state median in either direction; ask each community for its current rate.

What does memory care cost in Indiana?

There is no published memory-care median for Indiana or any other state -- CareScout does not survey it as a category. Any memory-care price you see quoted online is an estimate or an extrapolation, not a sourced figure. Get quotes in writing from each community instead.

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