Indiana Expands Medicaid Estate Recovery Timeline Starting July 1, 2026

Beginning July 1, 2026, Indiana is extending the amount of time the state has to pursue Medicaid estate recovery claims after a recipient’s death. Under the updated law, the state will now have up to nine months — instead of the previous 120-day deadline — to file a claim against a deceased Medicaid recipient’s estate, heirs, and beneficiaries.

This change primarily affects Indiana residents age 55 and older who received Medicaid benefits, along with their families and heirs.

What’s Changing?

The Indiana Family and Social Services Administration (FSSA) will now be allowed a longer period to seek repayment for Medicaid expenses paid on behalf of eligible recipients. The new nine-month recovery window begins on the date of death.

The expanded timeline applies not only to probate assets but also to certain non-probate transfers, including:

• Transfer on Death (TOD) deeds

• Jointly owned assets

• Accounts with beneficiary designations

• Other assets that pass outside traditional probate such as assets titled in a Revocable Trust

  
  

Why This Matters

Many families assume that assets transferred outside probate are protected from estate recovery. While this has not been true in Indiana for over twenty years, the updated approach signals a broader and more aggressive effort to recover Medicaid costs from estates, joint owners, and beneficiaries whenever legally permitted.

For families of deceased Medicaid recipients, this means extra caution may be necessary before transferring or distributing property.

Next Steps for Families

If your family may be affected by Indiana’s Medicaid estate recovery rules, consider taking these steps:

• Review estate documents and beneficiary designations carefully

• Speak with an elder law attorney about long-term asset protection strategies

• Avoid transferring property too quickly after a loved one’s death and seek the advice of an estate attorney

  
  

Understanding the new rules now can help families avoid costly surprises later and make more informed estate planning decisions.