Get Paid to Care for Your Elderly Parent in Indiana
Indiana offers a real pathway for adult children to be paid for caring for an aging parent at home. The state's Aged and Disabled (A&D) Waiver: part of Indiana's Medicaid program, includes a self-directed option that allows eligible seniors to hire a family member as their personal care attendant and pay them $11–$15 per hour through a state-managed fiscal agent.
This guide covers everything Indiana caregiving families need to know: the program structure, eligibility rules, pay rates, the application process, waiting list realities, and additional programs that can supplement your income and support your caregiving work.
Indiana pays family caregivers $11–$15 per hour through the self-directed option in the Aged and Disabled Waiver. Your parent must be 60 or older, qualify for Indiana Medicaid, and meet the nursing facility level of care criteria. Be aware that the A&D Waiver has a waiting list, apply as early as possible.
Indiana's Main Program: Aged and Disabled (A&D) Waiver
The A&D Waiver is Indiana's Medicaid Home and Community Based Services (HCBS) program for seniors aged 60 and older and adults with physical disabilities who require nursing-level care. The waiver provides services, including personal care, homemaker assistance, adult day services, and respite, that enable people to remain at home rather than entering a nursing facility.
The waiver is administered by the Indiana Family and Social Services Administration (FSSA), Division of Aging, through a network of Area Agencies on Aging and district offices across the state.
The Self-Directed Option: Hiring a Family Member
Within the A&D Waiver, Indiana offers a Self-Directed Personal Attendant Care (SDPAC) option. Under this arrangement, your parent acts as the employer, choosing who provides their personal care, setting the schedule, and directing the tasks. You, as an adult child, can be the personal attendant your parent hires.
A fiscal agent handles the payroll administration: withholding taxes, processing bi-weekly paychecks, managing workers' compensation, and issuing annual W-2s so your parent does not have to manage payroll directly.
What You Can Be Paid to Do
- Personal care: bathing, grooming, dressing, oral hygiene, shaving
- Incontinence care and toileting assistance
- Transfer assistance and fall prevention support
- Meal preparation and eating assistance
- Light housekeeping (directly health-related)
- Laundry for the participant
- Medication reminders
- Transportation to medical appointments
- Companion and supervision services for cognitively impaired participants
- Respite care
Eligibility Requirements
Your Parent Must:
- Be age 60 or older (or have a qualifying physical disability for the adult disability track)
- Be enrolled in Indiana Medicaid (Aged, Blind, and Disabled category)
- Meet the nursing facility level of care criteria through a clinical assessment
- Reside in a community setting in Indiana
- Be able to direct their own care or have an authorized representative who can
You (the Caregiver) Must:
- Be 18 years of age or older
- Not be the participant's spouse in most cases
- Pass an Indiana background check including criminal history and NSOPR search
- Complete required attendant training provided by the care coordinator or agency
- Be legally authorized to work in the United States
- Agree to maintain accurate time records
Indiana's A&D Waiver has a waiting list that can run from several months to over a year depending on available slots and county. Apply as early as possible, even if your parent does not yet need intensive care. Being on the list secures your place for when services are needed. Contact your local Area Agency on Aging to apply.
How to Apply: Step-by-Step
- Apply for Indiana Medicaid. Apply at in.gov/fssa or call 1-800-403-0864. Your parent must meet the income and asset limits for the Aged, Blind, and Disabled Medicaid category. An elder law attorney can assist if assets exceed limits.
- Contact your Area Agency on Aging to apply for the A&D Waiver. Find your local AAA at eldercare.acl.gov or call the Indiana FSSA Division of Aging at 1-888-673-0002. Ask to be placed on the A&D Waiver waiting list and request a needs screening.
- Complete a functional needs assessment. Once a waiver slot becomes available, an FSSA care coordinator will conduct a home-based assessment to determine clinical eligibility and authorized service hours.
- Develop a Person-Centered Support Plan. Your parent works with their care coordinator to create a support plan specifying the services, hours, and delivery model. Request the self-directed Personal Attendant Care option at this stage.
- Enroll with the fiscal agent. Indiana contracts with a fiscal management service for self-directed waiver participants. You and your parent will complete employer and employee enrollment paperwork, including background check authorization, W-4, and I-9.
- Complete required training. Attend orientation training provided by the care coordinator or fiscal agent. Training covers safe care techniques, emergency procedures, documentation requirements, and participant rights.
- Begin care and submit timesheets. Once enrolled, provide care per the approved support plan. Submit electronic timesheets through the fiscal agent's portal. Paychecks are issued bi-weekly.
While waiting for a waiver slot, explore Indiana's Caregiver Support Program through your local AAA, which may provide temporary respite funding, training, and supplemental services. Also consider whether a formal Caregiver Agreement for private-pay caregiving makes sense to implement in the interim.
Other Indiana Programs That Pay Family Caregivers
Indiana Caregiver Support Program
The Indiana Caregiver Support Program, funded through the Older Americans Act, provides respite grants, caregiver training, and supplemental services to family caregivers across Indiana. While it does not pay ongoing wages, some counties offer respite stipends that partially compensate family members. Contact your local AAA for availability.
Indiana PATH (Pathways to Aging at Home) Program
Indiana's PATH program provides home-based care coordination and limited services to seniors who do not yet meet the A&D Waiver's nursing level criteria. Some PATH services can be delivered by family members. Ask your FSSA care coordinator about PATH as a bridge while waiting for a waiver slot.
VA Veteran-Directed Care
If your parent is a veteran enrolled in VA healthcare through Richard L. Roudebush VA Medical Center (Indianapolis), the Northern Indiana VA Health Care System, or another Indiana VA facility, the VA Veteran-Directed Care program provides a budget to pay family caregivers. PCAFC offers monthly stipends for primary caregivers of eligible post-9/11 veterans.
Personal Care Agreement (Private Pay)
While waiting for the A&D Waiver or if your parent does not qualify for Medicaid, a written Personal Care Agreement allows your parent to pay you from private funds. This agreement must be prospective, specify fair market rates, and be drafted by an Indiana elder law attorney. It is critical for protecting payments under Indiana's Medicaid 5-year lookback period.
Check Your Parent's Eligibility
Our free Benefits Checker helps determine whether your parent likely qualifies for Indiana's A&D Waiver and other caregiver pay options.
Check Eligibility NowTax Implications for Indiana Family Caregivers
Federal Taxes
- W-2 income: Wages from the A&D Waiver self-directed option are reported on a W-2. Federal income tax and FICA taxes are withheld.
- IRS Notice 2014-7: If you live in the same home as your parent (the Medicaid waiver participant), your wages may qualify for the federal Difficulty of Care income exclusion. Consult a CPA before claiming this exclusion.
Indiana State Taxes
- Indiana has a flat 3.05% state income tax rate as of 2026. County income taxes also apply, ranging from 0.5% to 3% depending on the county.
- Indiana does not currently offer a specific state-level Difficulty of Care exclusion for in-home Medicaid caregivers, though federal exclusion rules may reduce your federal taxable income if you are a live-in caregiver.
What Indiana Caregivers Are Earning
At 30 hours per week and $12 per hour, Indiana family caregivers earn approximately $1,440/month or $17,280 per year. At 40 hours per week and $14 per hour, annual income reaches $29,120. While these rates are lower than coastal states, Indiana's lower cost of living means this income stretches further, and it partially replaces income you may have given up to provide care.
Contact Information
- FSSA Division of Aging: 1-888-673-0002 | in.gov/fssa/da
- Indiana Medicaid (OMPP): 1-800-403-0864 | in.gov/fssa/om
- Indiana Association of Area Agencies on Aging: iaaaa.org
- Eldercare Locator: 1-800-677-1116 | eldercare.acl.gov
Frequently Asked Questions
Indiana's Aged and Disabled Waiver pays family caregivers who serve as personal care attendants between $11 and $15 per hour through the self-directed IHCBS option. Rates vary by region and are determined by the participant's care plan.
The Aged and Disabled (A&D) Waiver is Indiana's Medicaid home and community-based services program for individuals who are elderly (60+) or have physical disabilities and require a nursing facility level of care. The waiver provides services that allow people to remain living at home rather than entering a nursing facility.
Indiana's A&D Waiver includes a self-directed option that allows participants to choose their own personal care attendants, including family members. The participant or their representative serves as the employer of record with support from a fiscal agent that handles payroll, taxes, and compliance.
Yes. Indiana's A&D Waiver self-directed option allows adult children (18 and older) to be hired as personal care attendants by their parents. Spouses are generally excluded. The adult child must pass a background check and complete required orientation before beginning paid care.
Indiana's A&D Waiver has historically maintained a waiting list. The waiting time varies but has ranged from several months to over a year in some periods. Individuals with urgent needs may receive priority consideration. Contact your local Area Agency on Aging or FSSA district office to get on the waiting list as soon as possible.
Indiana's A&D Waiver is administered by the Indiana Family and Social Services Administration (FSSA), Division of Aging. Applications and care coordination are managed through FSSA district offices and Area Agencies on Aging across the state.
Under Indiana's A&D Waiver self-directed option, family caregivers can be paid for personal care assistance (bathing, dressing, grooming), homemaker services (light housekeeping, laundry, meal preparation), medication reminders, transportation to medical appointments, and supervision for participants with cognitive impairment.
Yes. In addition to the A&D Waiver, Indiana offers the Traumatic Brain Injury Waiver and the Community Integration and Habilitation (CIH) Waiver for individuals with disabilities. Indiana also funds caregiver support programs through its Area Agencies on Aging, and veterans in Indiana may access VA Veteran-Directed Care programs.