HIP Income Limits in Indiana (Healthy Indiana Plan, 2026)

HIP (Healthy Indiana Plan) covers approximately 700,000 Indiana adults in 2026, making it the largest single health coverage program in the state. Indiana expanded Medicaid in February 2015, but it did so through a Section 1115 demonstration waiver rather than the standard ACA expansion route. The distinguishing feature of HIP is the POWER Account: most adult members contribute 2% of their monthly household income to a personal health savings account to receive HIP Plus benefits, which include dental and vision coverage with no copayments. The income threshold is the same as standard ACA expansion states at 138% of the Federal Poverty Level. The 2026 Federal Poverty Level base is $15,960 for a single person in the 48 contiguous states, and Indiana updates its income limits every March 1 rather than January 1, so the figures in this guide reflect the March 1, 2026 effective limits.

HIP eligibility covers four major groups: non-pregnant adults ages 19 to 64 up to 138% FPL (the HIP expansion group, which divides into HIP Plus and HIP Basic based on POWER Account contributions), pregnant women under Hoosier Healthwise up to 208% FPL, children from birth through age 18 under Hoosier Healthwise at up to 158% FPL for ages 1 to 18 and 208% FPL for infants under 1, and elderly or disabled adults under traditional Medicaid, Hoosier Care Connect, or the Indiana PathWays for Aging program. Each group uses the same online intake portal at fssabenefits.in.gov, run by the Indiana Family and Social Services Administration (FSSA). Indiana contracts with four Managed Care Entities as of 2026: Anthem, CareSource, MHS (Managed Health Services), and UnitedHealthcare Community Plan, which deliver HIP benefits.

The household-size table below shows the 2026 HIP income limits across all three covered MAGI populations. Indiana's HIP Plus tier is the dominant program for most adults: members who make monthly POWER Account contributions receive comprehensive coverage including dental, vision, and no copayments. Members who miss a contribution but earn at or below 100% FPL move to HIP Basic, a lower-benefit tier with copayments. Members earning above 100% FPL who miss a contribution face a 6-month lockout period before they can re-enroll in HIP. If your household income falls between 138% and 400% FPL, you almost certainly qualify for ACA marketplace premium tax credits through Healthcare.gov. If your child's family income exceeds the Hoosier Healthwise limit, the Hoosier Healthwise CHIP Package C extends children's coverage to 250% FPL.

HIP (Healthy Indiana Plan) income limits by household size (2026)

The 2026 HIP (Healthy Indiana Plan) income guidelines below are based on the 2026 Federal Poverty Level for the 48 contiguous states, effective March 1, 2026 (Indiana updates its Medicaid limits each March 1). Adult column = HIP expansion group (138% FPL, covers adults ages 19 to 64 with or without dependent children). Children column = Hoosier Healthwise standard children's Medicaid (158% FPL for ages 1 to 18; infants under 1 qualify up to 208% FPL). Pregnancy column = Hoosier Healthwise for Pregnant Women (208% FPL), with 12 months of postpartum coverage. Add roughly $5,680 of annual income per additional household member.

HIP (Healthy Indiana Plan) eligibility requirements (non-income)

Beyond income, HIP and other Indiana Medicaid applicants must meet the following non-income requirements. The items below apply across the MAGI categories that handle most HIP adult, Hoosier Healthwise children, and pregnancy applications. Aged, blind, and disabled (ABD) Medicaid and long-term care programs apply additional SSI-based rules and asset tests.

• Indiana residency: the applicant must currently live in Indiana with the intent to remain. No minimum length-of-residence requirement applies under federal MAGI rules.
• Age: HIP covers adults ages 19 to 64. Children birth through age 18 are covered under Hoosier Healthwise (children's Medicaid and CHIP). Adults age 65 and older, and disabled adults who receive Medicare, are covered under the aged/blind/disabled (ABD) Medicaid categories or the Indiana PathWays for Aging program.
• U.S. citizenship or qualifying immigration status: U.S. citizens, lawful permanent residents (subject to the federal 5-year bar in most cases), refugees, asylees, and certain other immigration statuses qualify. Pregnant women and children are exempt from the 5-year bar under federal CHIPRA rules. Undocumented adults do not qualify for HIP coverage but may receive emergency Medicaid for life-threatening conditions and labor and delivery.
• Social Security Number: required for all household members seeking coverage. Applicants who cannot provide an SSN at the time of application may provide documentation showing they have applied for one.
• Household composition under MAGI rules: the household includes the applicant, their spouse (if living together), and their tax dependents. For children applying for Hoosier Healthwise, the household includes the child and the parents or caretaker relatives living in the home.
• Asset test: NOT applied for MAGI HIP populations (adults, pregnant women, children). Asset tests ARE applied for aged/blind/disabled Medicaid: $2,000 for a single individual or $3,000 for a couple, with the primary home (up to $713,000 in equity), one vehicle, and certain burial accounts excluded. Indiana PathWays for Aging and institutional care programs use a 60-month lookback period for asset transfers.
• No mandatory employer-sponsored insurance buy-in: HIP does not require members to enroll in available employer-sponsored insurance as a condition of coverage, though Indiana previously had a cost-effective employer-sponsored insurance (ESI) provision that was later waived. Applicants with employer coverage may still apply for HIP; FSSA evaluates coordination of benefits.

What income counts for HIP (Healthy Indiana Plan)

HIP uses Modified Adjusted Gross Income (MAGI) rules to measure household income for adult, pregnant women, and children's Medicaid categories. MAGI income is based on the household's projected annual income for the current calendar year, similar to the income reported on a federal tax return. Aged/blind/disabled Medicaid and long-term care programs use SSI countable-income rules instead, which differ significantly. Indiana applies the standard federal 5% income disregard at the top of the MAGI calculation, which effectively raises the posted threshold by approximately 5 percentage points for each category.

Income sources included

• Wages, salaries, tips, and overtime pay (gross, before payroll taxes and deductions)
• Net self-employment earnings, freelance income, and gig-work income (after allowable business expenses, reported on Schedule C or Schedule SE)
• Social Security retirement benefits (SSDI is also counted; SSI is excluded, see below)
• Unemployment compensation (state unemployment insurance payments are fully counted)
• Pensions, retirement account withdrawals, and annuities (traditional IRA and 401(k) distributions are counted when withdrawn)
• Rental income, investment income, interest, dividends, and capital gains
• Alimony received under divorce decrees finalized before January 1, 2019 (post-2018 alimony is no longer taxable to the recipient under TCJA, so it is excluded under MAGI)
• Foreign earned income (excluded for tax purposes under the foreign earned income exclusion, but counted under MAGI for Medicaid)

Income sources excluded

• Supplemental Security Income (SSI) payments (SSI is not SSDI; SSI is a needs-based program and is fully excluded from MAGI)
• Child support received (child support is not counted as income for the recipient household under MAGI rules)
• Veterans Affairs disability compensation, military disability pay, and most VA pension payments
• Federal and state tax refunds, including refundable credits like the Earned Income Tax Credit (EITC) and the Child Tax Credit
• SNAP (food assistance) benefits, TANF cash assistance, and most other federal means-tested benefit payments
• Loans, gifts, and inheritances (one-time transfers are not counted as MAGI income; note they may affect resource counts for SSI-based Medicaid categories)
• Workers' compensation benefits

How to apply for HIP (Healthy Indiana Plan) in Indiana

HIP and Indiana Medicaid applications go through the FSSA Benefits Portal, the statewide intake system run by the Indiana Family and Social Services Administration (FSSA) Division of Family Resources (DFR). The same portal handles HIP, Hoosier Healthwise (children and pregnant women), SNAP, TANF, and child care assistance. Applications may be submitted online, by phone, by mail, or in person at any local DFR office. Indiana's DFR Call Center number is 1-800-403-0864, available Monday through Friday, 8 a.m. to 4:30 p.m. Eastern.

1. 1. Gather your documents: photo ID for every adult in the household, Social Security Numbers or cards for all household members, proof of Indiana residency, proof of citizenship or qualifying immigration status, and income documentation for the past 30 days (pay stubs, self-employment records, award letters for Social Security or pension income).
2. 2. Create an account at fssabenefits.in.gov (the FSSA Benefits Portal) or call 1-800-403-0864 Monday through Friday 8 a.m. to 4:30 p.m. Eastern to start an application by phone. For pregnant women, ask about Presumptive Eligibility, which can start Hoosier Healthwise prenatal coverage immediately while the full application is processed.
3. 3. Complete the application: list every household member, report all income sources and amounts, and answer questions about health insurance and household composition. The portal pre-screens for HIP, Hoosier Healthwise, SNAP, and TANF in one pass.
4. 4. Upload or mail supporting documents. The portal allows secure document upload. If mailing, send copies (not originals) to your local DFR office; find the nearest office at in.gov/fssa/dfr.
5. 5. Respond promptly to any DFR requests for additional information. DFR typically sends a request within 10 to 15 business days of receiving the application. Missing the response deadline is one of the most common reasons HIP applications are denied.
6. 6. Wait for the eligibility determination notice. Standard HIP applications are decided in 45 days. Pregnant-women applications under Presumptive Eligibility can be approved the same day by a qualified entity (hospital, clinic, or community organization). After approval, FSSA will assign the member to one of four managed care plans: Anthem, CareSource, MHS, or UnitedHealthcare.

Official portal: fssabenefits.in.gov

Documents needed

• Photo ID for each adult applicant (Indiana driver's license, state ID, passport, or military ID)
• Social Security Numbers or cards for every household member applying for coverage
• Proof of Indiana residency (utility bill, lease or mortgage statement, bank statement, or employer letter with Indiana address)
• Proof of U.S. citizenship or qualifying immigration status (birth certificate, U.S. passport, permanent-resident card, refugee travel document, or asylee approval letter)
• Last 30 days of pay stubs for wage earners, or 3 to 12 months of income records for self-employed or gig workers
• Award letters for any Social Security, SSI, SSDI, pension, or unemployment income received by any household member
• Proof of pregnancy from a licensed health care provider, if applying for Hoosier Healthwise pregnancy coverage or Presumptive Eligibility

Processing timeline: Standard HIP adult applications are decided within 45 days of the date the application is submitted. Pregnant women may receive same-day coverage through Presumptive Eligibility, administered by qualified entities including hospitals, federally qualified health centers, and participating clinics. Aged, blind, and disabled (ABD) Medicaid applications can take 60 to 90 days because they require a medical determination by the Social Security Administration or Indiana's Disability Determination Bureau. If your application is pending past 45 days without a determination, contact DFR at 1-800-403-0864.

Common reasons applications get denied

• Income above the HIP threshold (138% FPL): the most common single denial reason for adult applicants. Double-check your projected annual income, not just your current monthly pay stub.
• Failure to respond to a DFR request for additional documents within the specified deadline, which is typically 10 to 15 business days.
• Age outside the HIP range: adults 65 and older should apply for Medicare and then the Indiana ABD Medicaid or PathWays for Aging programs, not HIP.
• Failure to verify Indiana residency: no utility bill, lease, bank statement, or other documentation with an Indiana address in the applicant's name.
• Federal 5-year bar for newly arrived lawful permanent residents (exceptions apply for pregnant women and children under 21 under federal CHIPRA rules).

If your child's family income is over the Hoosier Healthwise Medicaid limit, Hoosier Healthwise CHIP Package C

Hoosier Healthwise CHIP Package C covers children under age 19 in Indiana households earning between 158% and 250% of the Federal Poverty Level. For a family of four in 2026, that means annual household income up to approximately $82,500. Package C requires small monthly premiums (generally $5 to $20 per child depending on family income) and provides comprehensive health, dental, and vision coverage similar to Medicaid. Children who qualify for Hoosier Healthwise Medicaid at 158% FPL or below have no premiums. Children of state employees may also qualify. Apply through the same FSSA Benefits Portal at fssabenefits.in.gov; the system automatically routes applications to the appropriate Hoosier Healthwise package based on family income.

Compare CHIP and Medicaid income limits across all 50 states

If you are 65 or older with limited income, Indiana Medicare Savings Programs

Indiana administers three Medicare Savings Programs (MSPs) for low-income Medicare beneficiaries, with income limits that are higher than the federal floor because Indiana sets its own thresholds. In 2026: Qualified Medicare Beneficiary (QMB) covers Medicare Parts A and B premiums, deductibles, and coinsurance for individuals with income up to approximately $1,977 per month (Indiana uses a limit above the standard 100% FPL floor); Specified Low-Income Medicare Beneficiary (SLMB) pays Part B premiums only for individuals with income up to approximately $2,238 per month; Qualifying Individual (QI) also pays Part B premiums for individuals with income up to approximately $2,433 per month. All three programs have an asset test of $9,950 for an individual or $14,910 for a couple in 2026. MSP enrollment automatically qualifies the member for federal Extra Help (Low-Income Subsidy) for Medicare Part D prescription drug costs. Indiana updates MSP income limits each March 1, the same schedule as HIP. Apply for MSPs through FSSA at fssabenefits.in.gov or by calling 1-800-403-0864. Dual-eligible Hoosiers who qualify for both Medicare and HIP-level Medicaid can access Dual Eligible Special Needs Plans (D-SNPs) through participating insurers.

Read the Medicare eligibility guide

Frequently Asked Questions