Indiana Medicaid Look-Back Calculator

Indiana's look-back and penalty divisor

Indiana divides counted transfers by $8,027 per month (Indiana IHCPPM 3006.00.00, Facility Rate Used to Calculate Penalty Period, effective July 1, 2026) and looks back 60 months.

• The months figure is rounded up at two decimal places before the days are counted. (IHCPPM 2640.10.35.05)
• The rate used is the one in effect on the application date, not the transfer date. (IHCPPM 2640.10.35.05)
• The months are rounded up to two decimals, and the fractional month is multiplied by 30.42 and rounded up to whole days. (IHCPPM 2640.10.35.05)
• The transfer rules apply to people receiving home and community-based services as well as nursing facility residents. (IHCPPM 2640.10.05)

How the look-back and the penalty work

When someone applies for Medicaid to pay for nursing-home care, the state looks back at gifts and transfers made for less than fair value. Federal law sets the look-back at 60 months before the application for transfers made since February 8, 2006, and California runs its own 30-month rule.

Every counted transfer in the window is added together and divided by the state's penalty divisor, the average monthly cost of private-pay nursing-facility care that the state publishes. The result is the number of months Medicaid will not pay for long-term care. Federal law says a state may not round a partial month down, and states handle the leftover fraction in different ways: as part of a month, as whole days, or as a one-time dollar charge. California, which runs its own rules, does not impose a partial month.

The penalty does not start on the date of the gift. It starts only when the person has applied, would otherwise be eligible, and is receiving long-term care, which is why a gift made years earlier can still delay coverage at the worst moment. California is the exception: under DHCS guidance a Medi-Cal period of ineligibility runs from the month of the transfer.

Transfers federal law does not penalize

Some transfers are exempt under 42 U.S.C. 1396p(c)(2): anything to a spouse or for the spouse's sole benefit; transfers to a blind or disabled child or a trust solely for that child's benefit; a trust solely for a disabled person under 65; and the home, when it goes to a spouse, a child under 21, a blind or disabled child, a sibling with an equity interest who lived there for a year, or a child who lived there for two years and provided care that kept the parent at home.

A penalty can also be avoided if the state accepts that the transfer was for fair value or made only for a reason other than qualifying for Medicaid, if all transferred assets are returned, or if the state grants an undue hardship waiver.