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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

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.

What does in-home care cost in Indiana, and when does a community become cheaper?

Indiana's 2025 CareScout median for non-medical home care is $35 an hour. A 40-hour week already runs about $6,067 a month, above Indiana's assisted living median -- so once care needs push past roughly 40 hours a week, it is worth running the math against a community's monthly rate.

Does Indiana have a state program that pays assisted living rent directly?

No broad, non-Medicaid state subsidy pays a family's assisted-living rent directly in Indiana. Available help is narrower: the PathWays Waiver for care services, RCAP for room-and-board assistance paired with a facility's waiver agreement, and VA Aid and Attendance for eligible veterans and surviving spouses.

Which long-term care ombudsman office covers Indianapolis?

Region 8 of Indiana's Long Term Care Ombudsman Program, operated by Indiana Legal Services, covers Marion County and all five surrounding collar counties this site serves -- Hamilton, Hendricks, Johnson, Boone and Hancock -- plus Morgan and Shelby. Reach the regional office at 317-631-9424 or the statewide line at 800-622-4484.

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