Caring for a loved one—whether they are an aging parent or an adult living with a disability—often comes with an emotional toll, but the financial side can feel just as overwhelming. Whether you are looking at in-home help, adult day programs or a residential facility, the primary question is usually the same: How do we pay for this?
Remaining at home is consistently the most desired option for individuals who need extra support—and it’s significantly less expensive. While moving to a skilled nursing facility may become necessary at some point, wraparound in-home care can help keep your loved one home longer.
Data from Indiana Family and Social Services Administration (FSSA) shows that the average annual cost to support an individual in a nursing facility is approximately $92,000, compared to roughly $34,000 for someone receiving services at home.
You don’t have to figure this out alone. At CICOA, we help families navigate these exact transitions every day. Here is a breakdown of the primary ways to fund different types of care in Indiana.
1. In-Home Care: Support Where It Matters Most
In-home care allows seniors and people with disabilities to remain independent. This support includes personal care (bathing/dressing), companion care and skilled nursing.
- Indiana Medicaid Waivers: Indiana offers five distinct waivers designed to help people receive care in the community rather than an institution. These include:
- Indiana PathWays for Aging Waiver for individuals who are 60 years of age or older and who meet the requirements for a nursing facility level of care.
- Health & Wellness Waiver for individuals under 60 years of age who meet the requirements for a nursing facility level of care.
- Traumatic Brain Injury Waiver for individuals of any age with a TBI diagnosis.
- Community Integration and Habilitation (CIH) and Family Supports Waivers (FSW) for children and adults with intellectual or developmental disabilities.
- CHOICE Program: A state-funded Indiana program that provides home-based services for those who may not qualify for Medicaid but still need financial help to stay at home.
- Veterans Benefits: The VA Aid and Attendance benefit can provide a monthly pension to help cover home care costs for eligible veterans and surviving spouses.
- Private Pay: Many families pay out-of-pocket for service coordination and non-medical services like light housekeeping or errands.
2. Adult Day Services
These programs offer care, meals and socialization during the day, providing essential “respite” (a break) for the primary caregiver.
- Waiver Coverage: All five of the Indiana Medicaid waivers listed above generally cover adult day services.
- Sliding Scale Fees: Many local centers in Central Indiana offer reduced rates based on income for those paying out-of-pocket.
3. Assisted Living
Assisted living is a residential setting with help for daily tasks, but without intensive medical supervision.
- The “Room and Board” Rule: In Indiana, Medicaid waivers can help pay for the services provided in an assisted living facility, but they do not cover room and board (rent and food).
- Long-Term Care Insurance: If your loved one has a policy, check the specific benefits for “Residential Care” to see what is covered.
4. Skilled Nursing Facilities
Skilled nursing provides 24-hour clinical care. Because it is the most expensive option, it is often seen as a last resort.
- Medicare (Short-Term Only): Medicare is not a long-term solution. It only covers skilled nursing for short-term rehab (up to 100 days) following a qualifying hospital stay.
- Medicaid: If your loved one meets the “Nursing Facility Level of Care” and financial requirements, Medicaid can cover long-term costs.
Tips for Managing Care Costs
- Compare the Savings: Investing in a ramp, a home health aide, or an adult day program is often a fraction of the cost of a facility stay.
- Organize Vital Records: You will need documentation regarding income, assets and insurance. As a caregiver, having legal Power of Attorney helps you manage financial affairs and apply for benefits on behalf of your loved one. For veterans, you will need records of their military service and discharge status to apply for VA benefits.
- Plan Early: Many Home and Community-Based Services have application periods or waiting lists. Starting the process now gives you more control and more choices later.
Let CICOA Be Your Guide
The financial landscape of caregiving can feel like a maze, but you don’t have to walk it alone. CICOA is your expert guide for aging and disability services in Central Indiana. Our team can help you understand waivers and benefits, assess eligibility, and find care that respects your family’s budget while matching your loved one’s needs.
Ready to explore your options? Contact a CICOA Caregiver Case Manager today to start building a sustainable plan for the future.
Kristen Gooch
Caregiver Case Manager
The post Paying for Different Types of Care: What Caregivers Need to Know first appeared on CICOA Aging & In-Home Solutions.