What Indiana offers people with disabilities
Indiana runs several programs for people with disabilities, but they work differently depending on whether you are working, unable to work, or somewhere in between. The largest program is Medicaid for people with disabilities, which covers medical care. Indiana also has Supplemental Security Income (SSI) through the federal government, which provides cash payments to people with very low income and limited resources. If you worked before becoming disabled, you may instead receive Social Security Disability Insurance (SSDI), which is also federal but based on your work history. Indiana's own programs—like vocational rehabilitation and work incentive support—sit on top of these, helping people stay in or return to work.
The key difference is this: federal programs (SSDI and SSI) are the same in every state, but Indiana's Medicaid rules, work support programs, and how those programs talk to each other are specific to Indiana. Understanding which program you might use, and how they stack together, determines what you can earn, what medical care you get, and what happens if you try to work.
Key Takeaways
- Indiana Medicaid for people with disabilities covers medical care but has strict income and resource limits that vary by program category.
- SSDI and SSI are federal programs, not Indiana programs, but Indiana Medicaid rules determine what medical coverage you get alongside them.
- Indiana's Ticket to Work program and vocational rehabilitation services help you work without when ready losing cash benefits or Medicaid.
- Work incentives like the Plan to Achieve Self-Support (PASS) and Impairment Related Work Expenses (IRWE) let you earn more money before benefits reduce.
- Indiana's Medicaid Waiver programs serve people with developmental disabilities and provide home and community-based services as an alternative to institutions.
Indiana Medicaid for people with disabilities
Indiana's Medicaid program for people with disabilities is called Medicaid for Disabled and Blind (DB). To receive it, you must meet Social Security's definition of disability (the same one used for SSDI and SSI), have income below a certain limit, and have resources (savings, property, vehicles) below another limit. The income limit for a single person is currently around $1,074 per month, though this changes yearly. The resource limit is $2,000 for a single person and $3,000 for a couple.
Indiana Medicaid covers doctor visits, hospital care, prescription drugs, mental health services, and long-term care. Unlike some states, Indiana does not have a separate "medically needy" category that lets you spend down excess income on medical bills to become Medicaid-may be able to access. If your income is above the limit, you do not get Medicaid in Indiana unless you are already receiving SSDI or SSI—in which case you may be may be able to access under different rules.
Indiana also runs Medicaid Waiver programs for people with developmental disabilities and some physical disabilities. These waivers let people receive services at home or in the community instead of in institutions. Waiver programs have their own income and resource rules, and most have waiting lists. The largest is the Residential Waiver, which covers supported living, day programs, and respite care.
How SSDI and SSI work in Indiana
SSDI and SSI are federal programs, so the rules are the same in Indiana as everywhere else. SSDI is for people who worked and paid Social Security taxes before becoming disabled. SSI is for people with disabilities who have very low income and resources, regardless of work history. Both require you to meet Social Security's strict medical definition of disability.
The difference that matters in Indiana is this: if you receive SSDI, you automatically become may be able to access for Indiana Medicaid after 24 months of receiving SSDI payments. If you receive SSI, you are automatically may be able to access for Indiana Medicaid in the same month you become may be able to access for SSI. This means your medical coverage does not depend on Indiana's separate income test—Social Security's information carries you through.
If you receive SSDI or SSI and also have income from work, Indiana has rules about how much you can earn before your Medicaid ends. For SSDI recipients, Medicaid continues as long as you are still disabled under Social Security's rules, even if your earnings are high. For SSI recipients, Medicaid can continue even after your SSI cash payment stops, as long as your income stays below a threshold (currently around $1,074 per month for a single person in Indiana).
Work incentives that let you earn more
Indiana recognizes that people with disabilities often want to work but fear losing benefits. Two federal work incentives—available in Indiana like everywhere else—let you earn more before your benefits reduce.
Impairment Related Work Expenses (IRWE) let you deduct the cost of items or services you need because of your disability in order to work. Examples include special transportation, attendant care, medical devices, or prescription drugs needed only for work. You subtract these costs from your gross earnings before Social Security counts your income. If you spend $300 a month on disability-related work costs, Social Security counts only your earnings minus $300.
Plan to Achieve Self-Support (PASS) lets you set aside income and resources for a specific work goal without losing SSI or Medicaid. For example, if you receive SSI and want to save money for job training or a business, you can write a PASS plan that excludes that money from the SSI income test. PASS plans must be written and approved by Social Security before you start setting money aside. Indiana's Social Security field offices can help you draft one, or you can work with a benefits planning service.
Indiana vocational rehabilitation and employment services
Indiana's Division of Disability Services and Rehabilitation (DDSR) runs vocational rehabilitation, a program that helps people with disabilities prepare for, find, and keep jobs. DDSR is free and does not reduce your benefits. Services include career counseling, job training, assistive technology, transportation to job interviews, and job coaching on the job.
To use DDSR, you must have a disability that creates a substantial barrier to employment, and you must need vocational rehabilitation services to work. You explore at your local DDSR office. There is no income or resource test—DDSR serves people regardless of how much money they have. However, DDSR prioritizes people with the most significant disabilities, so if funding is tight, people with less severe disabilities may wait longer.
DDSR also administers Indiana's Ticket to Work program, which is a federal program but run through state vocational rehabilitation agencies. If you receive SSDI or SSI, you can assign your Ticket to a service provider (like DDSR or a private employment agency). While you are using your Ticket, you can work and earn without Social Security counting your income toward the Substantial Gainful Activity (SGA) limit that would otherwise end your benefits. This gives you a window—usually up to 60 months—to test work without when ready losing your safety net.
Income and resource limits across Indiana programs
Indiana uses different income and resource limits depending on which program you are in. Understanding these limits is crucial because exceeding one can end your coverage.
| Program | Monthly Income Limit (Single) | Resource Limit (Single) | Notes |
|---|---|---|---|
| Indiana Medicaid DB | ~$1,074 | $2,000 | Limits change yearly. Excludes SSDI/SSI income if you receive those. |
| SSI (Federal) | ~$943 | $2,000 | Federal limits, same nationwide. Indiana Medicaid follows SSI may be able to access. |
| SSDI (Federal) | No income limit | No resource limit | You can earn any amount and keep SSDI. Medicaid continues after 24 months. |
| Medicaid Waiver (Developmental Disability) | Varies by waiver | Varies by waiver | Some waivers use SSI limits; others are higher. Check your specific waiver. |
These limits are updated yearly, usually in January. Indiana's Family and Social Services Administration (FSSA) publishes updated limits on its website. If you are close to a limit, contact your case manager or local FSSA office to confirm the current threshold before you earn or receive income that might push you over.
how the process works and who to contact
Applications for Indiana Medicaid and SSI go through your local Indiana FSSA office. You can explore in person, by mail, or online through the FSSA online portal. If you are explore for SSDI, you explore directly to Social Security through your local Social Security office or online at ssa.gov.
For vocational rehabilitation and Ticket to Work, contact your local DDSR office. DDSR has offices in every county. You can find yours on the DDSR website or by calling the main DDSR office in Indianapolis.
If you need help understanding your options or planning how work will affect your benefits, Indiana has Work Incentives Planning and information (WIPA) projects and Protection and Advocacy for Beneficiaries of Social Security (PABSS) programs. Both are free and confidential. WIPA projects help you understand work incentives and plan your return to work. PABSS helps you understand your rights and resolve problems with benefits. You can find your local WIPA and PABSS through the Social Security Administration's website.
What changes when you work
If you receive SSI and start working, your cash payment reduces by $1 for every $2 you earn above $65 per month (the SSI earned income exclusion). Your Medicaid, however, can continue even after your SSI payment stops, as long as your income stays below Indiana's Medicaid limit. This is called Medicaid Continuation or 1619(b) coverage.
If you receive SSDI and work, your cash payment does not reduce based on earnings. However, if you earn more than the Substantial Gainful Activity (SGA) amount—currently $1,550 per month in 2024—Social Security may determine that you are no longer disabled and end your benefits after a trial work period. You can use a PASS or IRWE to reduce your countable earnings and stay under SGA. If you use your Ticket to Work, you have additional protection: your benefits will not end due to work activity as long as your Ticket is active.
In both cases, your Medicaid status depends on whether you remain may be able to access under Indiana's rules. If your income rises above the Medicaid limit and you are not protected by a work incentive, your Medicaid ends. This is why understanding IRWE, PASS, and Ticket to Work before you start working is important.
Frequently Asked Questions
Can I get both SSDI and SSI at the same time in Indiana?
No. Social Security counts SSDI as income when determining SSI may be able to access, so receiving both simultaneously is rare. However, you can receive SSDI and Indiana Medicaid together, and you can receive SSI and Indiana Medicaid together. If you receive SSDI and your payment is very low, Social Security may also pay you a small SSI supplement, but this is uncommon.
What is the waiting list for Indiana's Medicaid Waiver programs?
Waiting lists vary by waiver and change frequently. The Residential Waiver, which serves people with developmental disabilities, typically has a waiting list of several years in some counties and shorter waits in others. Contact your local FSSA office or DDSR to ask about current wait times for the specific waiver you need.
If I work and lose my Medicaid, can I get it back?
Yes. If your income drops below Indiana's Medicaid limit, you can reapply. If you are using a work incentive like IRWE or PASS, your countable income may stay below the limit even though your gross earnings are higher, so you keep Medicaid without reapplying. Talk to a WIPA counselor before your income changes so you understand what will happen to your coverage.
Do I have to use DDSR vocational rehabilitation, or can I work with a private job coach?
You do not have to use DDSR. You can work with a private employment agency or job coach. However, DDSR services are free, and DDSR can help you use your Ticket to Work, which provides extra protection for your benefits while you work. If you choose a private provider, make sure they understand work incentives and can help you avoid losing benefits unintentionally.
What happens to my Medicaid if I move out of Indiana?
Indiana Medicaid ends when you move. You must explore for Medicaid in your new state. If you receive SSDI, you will become may be able to access for Medicaid in your new state after 24 months of SSDI (the clock restarts). If you receive SSI, you become may be able to access for Medicaid in your new state when ready. Contact your new state's Medicaid office as soon as you move to avoid a gap in coverage.