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What Medicare Does and Does Not Pay For

Medicare covers short skilled nursing stays, home health and hospice. It does not pay for assisted living or custodial care, in any state.

HomeCosts & PayingWhat Medicare Does and Does Not Pay For
Short answer

Medicare does not pay for assisted living, memory care, or long-term custodial care anywhere in the country. It covers limited skilled nursing facility stays after a qualifying hospital admission, intermittent skilled home health, and hospice.

What Medicare covers

  • Skilled nursing facility care after a qualifying inpatient hospital stay, for a limited period, when skilled care is needed daily. This is rehabilitation, not long-term placement.
  • Home health that is intermittent and skilled — nursing visits, physical, occupational or speech therapy. Not a caregiver who stays with your parent.
  • Hospice — the hospice team, medications related to the terminal diagnosis, and equipment. Not room and board in a facility.
The observation status trap. A Medicare skilled nursing benefit requires a qualifying inpatient hospital admission. Time spent under “observation status” does not count, even if your parent slept two nights in a hospital bed. Ask the hospital directly whether your parent is admitted as an inpatient or under observation, and ask in writing.
What senior care costs. Indiana's 2025 CareScout medians: $5,639/month assisted living, $8,943-$10,326/month nursing home. No metro-specific or memory-care figure exists. Read the full explanation →

Questions families ask

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.

What does a nursing home cost in Indiana?

CareScout's 2025 survey puts Indiana's nursing home median at $8,943 a month for a semi-private room and $10,326 for a private room. Semi-private figures are often Medicaid-weighted and lower than a private-pay quote you'd actually be offered.

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