Indiana Residential Alzheimer’s Care (Memory Care): Laws, Costs & Financial Help

Legal Definition of Assisted Living / Memory Care in Indiana

In Indiana, assisted living homes are called residential care facilities. They provide rooms, meals, and healthcare based on your loved ones needs. Residential care facilities assist residents with activities of daily living like bathing and eating and may also offer nursing care.

Some assisted living homes in Indiana have special programs or units for people with Alzheimer’s. Special care units have additional requirements. A doctor’s diagnosis of dementia is not required to move into memory care in Indiana.

As of 2024, all homes give disclosure forms to prospective residents that lists:

– The philosophy on treating residents with dementia
– How the home determines that a resident is suitable for memory care
– The assessment process and formation of a personalized special care plan
– Staff information including the number of employees and their training
– Description of frequency and types of activities
– Rules for use of physical or chemical restraints
– Itemized list of all charges and fees
– Anything else specific to memory care

Assisted living homes in Indiana are regulated by the Indiana State Department of Health and the Indiana Family and Social Services Administration. There are about 160 memory care residences in Indiana. For free help finding a residence that meets your family’s needs and budget, click here.

How Much Does Memory Care Cost in Indiana?

There can be significant differences in the cost of assisted living and memory care depending on what part of Indiana you are in. The table below lists the median monthly cost of both assisted living and memory care facilities in different locations as of 2025. Individuals who are in the early to mid stages of dementia may be best suited for assisted living facilities, which are less expensive than memory care, while those with more severe symptoms or who are in the late stages of dementia will likely need memory care.

For context, the median cost of assisted living across the country in 2025 was $6,200/month, while it was $5,639/month in Indiana in 2025.

Indiana Assisted Living Laws & Regulations

Admissions Process & Requirements

An evaluation of the patient’s needs is required before admission into an assisted living residence, and it must be updated semi-annually. The evaluation must include:

– Physical, cognitive, and mental status
– Ability to perform activities of daily living
– The resident’s weight
– Ability to self-administer medications

This evaluation is usually done by a healthcare professional working for the residence. Some assisted living homes will charge a community fee that includes up-front costs like the assessment, deep cleaning and painting the room to prepare for a new occupant. Other homes require the assessment to be conducted by an outside doctor, meaning your loved one will need to pay for it.

The contract between a resident and the facility in Indiana must include the home’s licensure status, services provided and information on costs and charges. Residential care facilities must file a disclosure agreement annually with the state’s Division of Aging, and this agreement must also be provided to residents or people who are considering moving in. In memory care, residents receive standardized forms with information including how an assessment is made, how special care plans are implemented, a description of activities provided, and the number of staff and staff training requirements.

Nursing care can be provided in assisted living. The care must be intermittent, meaning not required 24 hours per day. Someone who needs nursing supervision beyond what a residence can provide is allowed to contract with outside doctors’ offices to receive that care. Rehabilitation therapies are also only allowed if a resident has an agreement with an outside provider.

A resident cannot be admitted into assisted living if:

– Is dangerous to themselves or others
– Requires 24-hour nursing care
– Is not medically stable
– If two of these three issues apply: the patient needs total assistance with eating, using the bathroom, or moving from room to room.

It is possible to move into assisted living on short notice, but this is not a good idea because of the steps involved and because the sooner you begin looking for a home the more likely you are to find a perfect match. Beginning your search early also allows your loved one to contribute more to the decision, which gets difficult with the thinking problems that come in the middle and later stages of dementia.

Facility / Residence

Bedrooms must be at least 100 square feet for one person or 80 square feet per person if there are multiple occupants. The maximum number of beds allowed in a resident unit is four. Every unit must have a toilet, sink, and bathtub or shower.

Memory care residences are not required by regulations to have dementia-friendly design features like easily navigated hallways that run circular, so residents won’t encounter dead ends. When considering an assisted living home, inspect it with an eye on whether your loved one will be comfortable in the space. Outside areas have also been shown to be beneficial for people with Alzheimer’s disease or dementia.

Staff & Training

There are no specific staff-to-resident ratios in assisted living in Indiana. Staffing must be adequate to address the health needs of every resident, and someone certified to perform CPR must be on-site and awake at all times. Training depends on the types of residents. Staff who work directly with people who have dementia must have at least six hours of dementia-specific training within six months of hiring, and then three more hours of training annually. Administrators must have work experience that specifically relates to dementia-friendly memory care.
Administrators must be licensed, a process which includes a training program that is at least 860 hours. Administrators must also have 40 more hours of semi-annual continuing education in a relevant field.

Evictions & Discharges

Indiana regulations say a person can be discharged for:

– Being dangerous to themselves or others
– Needing nursing care 24 hours per day
– Having a medical condition that cannot be managed by the residence
– Being medically unstable
– Not being able to do two of the following three things without total assistance: eat, go to the bathroom or move from room to room

No regulations say memory care can discharge someone for nonpayment, but residences may have their own policies. It’s important to be very clear about exactly what can lead to an eviction. If you are considering assisted living or assisted living with memory care for your loved one, ask for eviction information in writing. For more on how to handle an eviction, click here.

Financial Assistance For Residential Alzheimer’s Memory Care

Indiana Medicaid’s Aged and Disabled Waiver

The Aged and Disabled Waiver from Indiana Medicaid (also known as Hoosier Care) will pay for long-term care services and supports for qualified individuals who reside in assisted living, an adult family care home, their own home or the home of a loved one. Benefits include personal care assistance with the Activities of Daily Living (mobility, bathing, dressing/grooming, eating, toileting), adult day care, meal delivery, specialized medical supplies, homemaker services and case management. To qualify for the Aged and Disabled Waiver, applicants must meet two financial requirements – an asset limit ($2,000 for an individual in 2026) and an income limit ($2,982/month for an individual in 2026) – as well as the medical requirement of needing a Nursing Facility Level of Care (NFLOC).  It’s important to note that a dementia diagnosis does not guarantee a NFLOC designation.

Indiana Structured Family Caregiving

This unique sub-program is a component of the A&D Waiver but can be extremely helpful to families who have family members with dementia. This enables a loved one to move into the home of a family member and for them to receive compensation. This potentially allows caregiver benefits to be paid to family members for care services provided. For more information, go to the Aged and Disabled Waiver website.

Veterans Affairs (VA)

Qualified Indiana veterans (or their surviving spouses) with dementia can also receive financial assistance through a Veterans Affairs (VA) Pension that they could use to pay for assisted living or memory care.

There are three levels of VA Pensions – Basic, Aid & Attendance (A&A) and Housebound. To qualify for any of them, veterans or their surviving spouses need to meet a net worth limit of $163,699 (effective Dec. 1, 2025 – Nov. 30, 2026), which is calculated by adding the total of their assets to their annual income. Some assets are exempt, like a primary home, primary vehicle and household furniture and appliances. VA Pension applicants also have to meet an income limit to be eligible – their income must be less than the VA Pension they are applying for in order for them to qualify. And veterans must meet a military service requirement, which includes not having received a dishonorable discharge.

To qualify for A&A, veterans or their surviving spouses must also meet a medical requirement, which is one of the following must be true:

• They need help to perform the Activities of Daily Living (mobility, bathing, dressing/grooming, eating, toileting) OR
• They have to stay in bed for at least a large portion of the day due to illness OR
• They are in a nursing home due to loss of mental or physical abilities OR
• Their eyesight is extremely limited (5/200 or less in both eyes even with glasses or contacts; or concentric contraction of the visual field to 5 degrees or fewer)

To qualify for Housebound, veterans must spend most of their time in their home due to a permanent disability.

There is no medical requirement for VA Basic Pensions.

Qualified veterans or their surviving spouses are entitled to their Maximum Annual Pension Rate (MAPR) minus their annual income. The following MAPRs are effective from Dec. 1, 2025 to Nov. 30, 2026:

VA Basic Pension MAPRs

• Veterans without spouses or children: $17,441
• Veterans with dependent spouses or children: $22,839
• Surviving spouses without dependent children: $11,699
• Surviving spouses with dependent children: $15,311
• Two veterans married to each other: $22,839

VA Aid & Attendance MAPRs

• Veterans without spouses or children: $29,093
• Veterans with dependent spouses or children: $34,488
• Surviving spouses without dependent children a maximum of $18,697
• Surviving spouses with dependent children: $22,304
• Two veterans married to each other and one qualifies for A&A: $33,548
• Two veterans married to each other and one qualifies for A&A and one for Housebound: $38,350
• Two veterans married to each other and both qualify for A&A: $46,143

VA Housebound MAPRs

• Veterans without spouses or children: $21,313
• Veterans with dependent spouses or children: $26,710
• Surviving spouses without dependent children: $14,298
• Surviving spouses with dependent children: $17,902
• Two veterans married to each other and one qualifies for Housebound: $26,710
• Two veterans married to each other and both qualify for Housebound: $30,580
• Two veterans married to each other and one qualifies Housebound and the other for A&A: $38,350

Veterans Homes

There is one veterans’ home in Indiana, located in West Lafayette. The Indiana Veterans’ Home is a residential care facility that provides long-term care for veterans, including full-time nursing, short-term rehab and memory care. They provide care for more than 400 patients. Neighboring states have more veterans’ homes, so a loved one might consider looking there for more options as there are no requirements that one must live in the state. For example, Illinois has four Veterans’ homes statewide and some are located relatively close to their shared border. Additionally, Kentucky also has four facilities. More info.

Supplemental Security Income

Dementia patients age 65 and over with limited income and assets may qualify for Supplemental Security Income (SSI). These funds can be used to pay for the cost of assisted living or memory care. As of 2026, the maximum SSI benefit for an individual is $994/month and for a married couple it’s $1,491/month.

To qualify for SSI, applicants must be age 65 and over or have a significant disability, and they must meet an income limit and an asset limit. As of 2026, individuals may meet the SSI income limit if they earn less than $2,073/month OR they get less than $1,014/month from non-work sources, like Social Security benefits or pension payments. They may meet the SSI asset limit if they have $2,000 or less in countable assets. For couples, the income limit is $3,067/month in work income or $1,511/month in non-work income, and the asset limit is $3,000.

Other Options

1)Elder care loans exist for families to cover the costs of moving into memory care while waiting for other financial resources to become available. For example, if one is waiting for a VA pension to be approved or waiting to sell a home. More on bridge loans for memory care.

2) Some tax credits and deductions can provide financial relief for seniors with dementia and their families. Seniors with limited financial resources can claim the Credit for the Elderly and/or the Disabled, as long as no one can claim them as a dependent. If someone (like an adult child) can claim the senior as a dependent, they can utilize the Child and Dependent Care Credit, and they can deduct any medical or dental expenses they paid for the senior.

3) A reverse mortgage loan can be a viable option for some senior homeowners who are in need of extra income to help pay dementia care. However, reverse mortgages are not recommended for every senior homeowner who needs extra income, so it’s important to consult with a professional before taking out one of these loans.