Indiana's Medicaid Estate Recovery Program (MERP) recovers amounts Medicaid paid on a recipient's behalf after age 55, from probate and certain non-probate assets. As of July 1, 2025, the state has 9 months after death to file a claim, and recovery does not proceed while a spouse survives or a child is under 21, blind, or disabled.
The detail behind the program
MERP surprises families who assumed Medicaid-funded care was simply free. It is not forgiven -- it is deferred until after death, and then recovered from the estate, which can include the home if it passed through probate. The spousal and dependent-child protections are significant and often enough to avoid recovery entirely in a two-person household. FSSA also reviews hardship waiver requests case by case. An elder law attorney can walk through whether a specific home or asset is exposed before a family commits to a Medicaid-funded care plan, which is a conversation worth having early, not after a death in the family.
