Indiana Hoosier Healthwise for a Grandchild in Kinship Care

The child needs a doctor. Maybe prescriptions. Maybe dental work that can't wait. Indiana's Hoosier Healthwise program covers children under 19. A kinship caregiver can apply for the child, and eligibility depends on the household and income rules below.

How Income Counting Works for Kinship Families

Hoosier Healthwise uses Modified Adjusted Gross Income (MAGI) rules. Here's where it gets good for grandparents: if you don't claim the child as a tax dependent, the child is evaluated as their own household unit. Your income doesn't count.

Most informal kinship caregivers don't claim the child on their taxes in the first year. That means the child's eligibility is based on the child's income alone — which is usually zero.

If you do claim the child as a tax dependent, your household income enters the calculation. This is worth thinking about before tax season.

Coverage Levels

Hoosier Healthwise has two packages:

• Package A (Free) — children in households up to 158% of the Federal Poverty Level. No premiums, no copays for most services.
• Package C (Copay) — children in households between 158% and 250% FPL. Small copays apply for some services.

For a child evaluated as their own household with zero income, the income test is within Package A's limit; other eligibility requirements still apply. Package A has no premiums or copays for most covered services.

Coverage includes pediatric care, prescriptions, dental, vision, mental health services, and hospitalization. You'll choose from the Managed Care Entities available for the child's program once the child is enrolled.

12-Month Continuous Eligibility

Since January 1, 2024, Indiana locks in Hoosier Healthwise coverage for a full 12-month period once a child is approved. Even if household income changes during that year, coverage stays active. It can only be closed mid-year if the child turns 19, moves out of Indiana, you request closure in writing, or coverage was approved due to agency error or fraud.

This is significant for kinship families with fluctuating situations. You don't need to worry about a recertification disrupting coverage every few months.

Retroactive Coverage

If the child was eligible during the three calendar months before the month you applied, Hoosier Healthwise can cover medical expenses from that period retroactively. If the child saw a doctor or visited an emergency room in those months, those bills may be covered.

Ask DFR to check retroactive eligibility when you apply.

How to Apply

Apply through fssabenefits.in.gov — the same portal used for TANF and SNAP. You can apply for all three simultaneously. You can also apply at your local DFR office or by mail.

You'll need the child's birth certificate, Social Security number, and proof of residence. The child's income documentation (if any). If you're applying as a non-tax-filer for the child, make that clear on the application so DFR evaluates the child as a separate MAGI household.

Processing takes up to 45 calendar days for Medicaid applications.

CHIP vs. Hoosier Healthwise

Indiana's CHIP (Children's Health Insurance Program) and Hoosier Healthwise are closely linked. CHIP covers children in families with slightly higher incomes who don't qualify for standard Medicaid. In practice, the application is the same — DFR determines which program the child qualifies for based on household income. You don't need to apply separately.

The Indiana Kinship Financial Help Guide walks through the health coverage application step by step, including how to ensure DFR counts the child as a separate household and what to do if coverage is denied.

See more Indiana guides →