HomeCareAtlas Team · Updated November 2026
Researched from primary state regulatory sources.
How to Start a Home Care Agency in Indiana
Starting a home care agency in Indiana costs roughly $30,000 - $60,000 and takes 60-90 Days. Here's every step, fee, and deadline — sourced directly from Indiana Department of Health (IDOH).
Indiana requires a Personal Services Agency (PSA) license for non-medical home care. The law is IC 16-27-4. PSAs give attendant care, homemaker, and companion help at home. The license costs $250 and lasts one year. Your agency name cannot use the word "health" or "nursing." You cannot act like a home health agency without that separate license.
To start a non-medical home care agency in Indiana, you need a Personal Services Agency (PSA) License from the Indiana Department of Health (IDOH). The application fee is $250 (psa license fee (initial and annual)), the process takes approximately 60-90 days, and total startup costs range from $30,000 - $60,000. You need a $250 Personal Services Agency license from IDOH. Owners and managers must send a criminal history report dated within the last 3 months. You also need a physical location in Indiana.
- License Required
- Yes — Personal Services Agency (PSA) License
- Regulatory Body
- Indiana Department of Health (IDOH)
- Application Fee
- $250 (psa license fee (initial and annual))
- Timeline
- 60-90 Days (estimated licensing timeline)
- Total Startup Cost
- $30,000 - $60,000
- Key Requirement
- You need a $250 Personal Services Agency license from IDOH. Owners and managers must send a criminal history report dated within the last 3 months. You also need a physical location in Indiana.
- Last Verified
- November 2026 against Indiana Department of Health (IDOH) regulations
Estimated Licensing Timeline
This is our best guess. Check with the Indiana Department of Health (IDOH).
Residents Age 70+
Competitive Market
How Indiana compares to neighboring states
| State | License Fee | Timeline | Startup Cost |
|---|---|---|---|
| Indiana ← | $250 | 60-90 Days | $30,000 - $60,000 |
| Illinois | $1,500 | Up to 90 Days to Provisional + 240-Day Provisional Period | $35,000 - $90,000+ |
| Ohio | $250 | 30-90 Days | $40,000 - $80,000 |
| Kentucky | $500 | 60-90 Days | $30,000 - $60,000 |
| Michigan | $0 (no license) | 8-12 weeks | $12,000 - $39,000 (our estimate) |
Indiana Licensing Overview
The Indiana Department of Health (IDOH) oversees all non-medical agencies.Indiana requires a Personal Services Agency (PSA) license for non-medical home care. The law is IC 16-27-4. PSAs give attendant care, homemaker, and companion help at home. The license costs $250 and lasts one year. Your agency name cannot use the word "health" or "nursing." You cannot act like a home health agency without that separate license.
PSA License Required
You must get a PSA license from IDOH before you open. Each parent agency needs its own license. It expires one year after it is issued.
Criminal History Reports for Owners
Owners, the manager, and alternate managers must send a lifetime criminal history report. It must be dated within the past 3 months. IDOH's June 2025 newsletter says new agencies must get checks through the Indiana State Police or Safe Hiring Solutions. That is newer than its 2022 letter, which allowed any vendor.
In-State Location Required
You need a physical location and a working phone in Indiana. IDOH says a home address can be used. Branch offices must sit within 120 miles of the parent office.
Estimated Startup Costs (2026)
Budget for $30,000 - $60,000 to ensure 3-6 months of runway.
| Category | Low Est. | High Est. |
|---|---|---|
| Initial PSA License Fee | $250 | $250 |
| Annual Renewal Fee | $250 | $250 |
| Business Formation / Legal Setup | $250 | $1,200 |
| General Liability Insurance | $1,200 | $4,000 |
| Workers' Compensation | $400 | $2,500+ |
| Criminal History / Screening Costs | $400 | $1,800 |
| Lift-Service Insurance / Training | $400 | $2,000 |
| Office / Administrative Setup | $1,200 | $4,000 |
| Initial Marketing | $1,500 | $4,500 |
| Working Capital | $12,000 | $35,000 |
We map every cost and file your Indiana license for you.
How to Get an Indiana PSA License
1-2 Weeks
Form Your Business Entity
Register your LLC or corporation, obtain an EIN, open a business bank account, and establish an Indiana physical location before applying.
1-3 Days
Choose a Compliant Business Name
Do not use the words "health" or "nursing" in your name. A PSA may not advertise as a home health agency. IDOH checks your name against IC 16-27-1-15.
1-3 Weeks
Gather Owner and Manager Criminal History Reports
Get a lifetime criminal history report for every owner, the manager, and each alternate manager. Reports must be dated within 3 months of filing. Use the Indiana State Police (fingerprints through IdentoGO or IDEMIA) or Safe Hiring Solutions. IDOH's June 2025 newsletter says it accepts only those. Its older 2022 letter allowed any vendor, so follow the newer rule.
2-4 Weeks
Prepare Policies, Forms, and Competency Materials
Indiana's PSA application asks for a lot of paperwork. Write every policy IC 16-27-4 calls for. That includes service plans, client rights, complaints, TB tests, training, and unstable health conditions. Also send a written skills test and a hands-on skills checklist. Don't just paste the law or send a staff handbook.
1-2 Weeks
Secure Insurance and Required Coverage
Obtain general liability and workers' compensation. If you offer lift services, your liability policy must cover lift services (IC 16-27-4-6).
1 Week
Submit PSA Application
Apply online in the IDOH Gateway. You sign in with Access Indiana. Upload your policies, Secretary of State papers, IRS EIN letter, and criminal history reports. Then pay the $250 fee online. It is not refunded.
30-60 Days
Respond to State Review
IDOH reviews applications in the order received. It says review may take 30 to 60 days. If it asks for more papers, send them within 30 days or your file may be closed. IDOH may also visit your office. Do not serve clients until you have your license.
We can do all of them for you in Indiana.
New 2026 Legal Mandates
Current Criminal History Reports
Owners, managers, and alternate managers must send a lifetime expanded or national criminal history report. It must be dated within the past 3 months (IC 16-27-2 and IC 20-26-2-1.5).
No 'Health' or 'Nursing' Branding
A PSA may not advertise as a home health agency. It may not use the word "health" or "nursing" in its name. IDOH applies this rule under IC 16-27-1-15.
Indiana Physical Location
The agency must have a physical location in Indiana. IDOH says a home address is allowed. Out-of-state agencies must register with the Secretary of State and have an Indiana branch (IC 16-27-4-6).
Branch Office 120-Mile Rule
Branch offices operate under the parent license. Each branch must be owned by the parent and sit within 120 miles of it (IC 16-27-4-6).
Client Paperwork Deadlines
Clients must sign a service plan within 14 days of starting care. You must give the client rights statement within 7 days. The manager must do a client satisfaction review every 76 to 104 days (IC 16-27-4-10 through 12). Keep records in Indiana for 7 years (IC 16-27-4-18).
Our Indiana licensing team tracks the law so you do not have to.
Caregiver Mandates
Important Warning
The $250 license is cheap. Messy policies, weak skills checks, and poor records are what cost you.
- Attendant Care Competency Evaluation: IC 16-27-4 sets no training hours. But you must check each worker's skills on every hands-on care task. Do this before they do the task alone. Write it down with a date and signature (IC 16-27-4-16).
- Criminal History Screening: IC 16-27-2 sets criminal history check rules for agency staff. IDOH's June 2025 newsletter says checks for new workers must go through the Indiana State Police or Safe Hiring Solutions. Build this step into hiring.
- Lift Services Coverage: If you offer lift services, your liability policy must cover them. Train each worker on lifts. Also train them on each client's own lift, in the client's home (IC 16-27-4).
- TB Test: Every worker who will see clients needs a TB test first. Use the same rule as home health agencies (IC 16-27-4-15 and 410 IAC 17-12-1).
Regional Billing Snapshots
*Regional rates vary by specialized care needs (Dementia, Parkinson's) and local competition.*
We launch Indiana home care agencies start to finish.
Regional Market Opportunities
Indiana costs little to enter. The license is cheap and the rules are clear. It has about 1.3 million adults 65 and older (Census 2025 estimate). Rates below are our estimates, not official data. Check local prices before you set yours.
Indianapolis Metro
Largest market in the state, with the best mix of senior population, hospital systems, and referral opportunities.
Key: Probably the most practical launch market for a first Indiana agency.
Hamilton / Boone / Hendricks Counties
Affluent suburban zones with strong family caregiver demand and healthier private-pay potential.
Key: Better margins than some urban-core areas if you can recruit reliably.
Fort Wayne
Lower-cost market with stable senior demand and less competition than Indianapolis.
Key: A good fit for operators focused on efficiency and local referrals.
Northwest Indiana / Chicagoland Spillover
Can benefit from proximity to Illinois demand while maintaining Indiana cost structure.
Key: Worth a look if you want to be near Chicago but follow Indiana's rules.
Evansville / South Bend / Regional Cities
Smaller local markets with lower overhead and less saturation.
Key: Success here tends to come from relationships, staffing discipline, and reputation.
Cost of care in Indiana
What agencies charge clients vs. what caregivers earn in Indiana. The difference is the agency's gross margin per billable hour — before overhead like insurance, admin, marketing, and compliance costs.
$32
Avg. hourly rate charged to clients
$19.20
Avg. caregiver hourly wage
$12.80
Gross margin per hour
40%
Gross margin %
What this means for agency owners
In Indiana, agencies keep roughly $12.80 per billable hour after paying the caregiver. That's a 40% gross margin.
This is a strong margin that gives you room to cover overhead costs (insurance, admin, marketing, compliance) and still run a profitable agency.
Sources: Avg. hourly rate from CareYaya and CareScout 2025 surveys (averaged). Caregiver wage from Care.com. Gross margin is before overhead costs like insurance, admin, marketing, and compliance.
Indiana Medicaid Programs
Medicaid Waivers (FSSA)
Medicaid home care in Indiana is run by the Family and Social Services Administration (FSSA), not IDOH. Your PSA license is not enough on its own. You must also sign up as a Medicaid provider. Expect more paperwork.
Indiana PathWays for Aging
PathWays is FSSA's Medicaid program for people 60 and older. It started in 2024. Members pick a health plan, and the plan pays for care at home. To get paid, you work with those health plans.
Policy Readiness Matters
Because Indiana's application is document-heavy, agencies that plan for Medicaid later should build clean policies and audit-ready files from day one.
Becoming a Provider
Essential 2026 Tech Stack for Owners
Tiles outlined in teal are areas HomeCareAtlas covers in our platform.
Indiana Licensing FAQ
How much does a home care license cost in Indiana?
The Personal Services Agency fee is $250. The license lasts one year. Renewal also costs $250.
How long does Indiana licensing take?
Plan on about 60 to 90 days from start to finish. That is our estimate. IDOH says its review may take 30 to 60 days. Missing papers make it longer.
Can I use 'Health' or 'Nursing' in my Indiana agency name?
No. IDOH says a PSA may not use the word "health" or "nursing" in its name. It also may not advertise as a home health agency (IC 16-27-1-15).
Do I need a physical office in Indiana?
Yes. You need a physical location and a working phone in Indiana. IDOH says it can be a home address.
Does Indiana inspect my agency before licensing?
It can. IDOH issues the license after a complete application shows you follow IC 16-27-4. The law lets IDOH visit on-site with the first license or at renewal. It also visits to check complaints.
Is Indiana a good market for home care agencies?
It can be. The license is cheap and the rules are clear. Most of the work is good policies, good hiring, and good records.
Starting in a Nearby State?
Licensing requirements vary a lot between states. Compare your options:
Illinois
$1,500 fee · Up to 90 Days to Provisional + 240-Day Provisional Period
Ohio
$250 fee · 30-90 Days
Kentucky
$500 fee · 60-90 Days
Michigan
No state license required · 8-12 weeks
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Sizing up the competition? See the 1,100 home care agencies already operating in Indiana →
Home care agencies in Indiana
Want to see the competition up close? Look at who is already open, city by city.
- Home care agencies in Indianapolis
- Home care agencies in Evansville
- Home care agencies in Green Acres
- Home care agencies in Highland
- Home care agencies in Fort Wayne
Looking for care for a family member? Find agencies near you
Considering other states?
- Alabama
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- Texas
- Utah
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- Virginia
- Washington
- West Virginia
- Wisconsin
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Where our numbers come from
We check each fact against Indiana's own rules. Tap a source to read it yourself.
- License needed?YesIC 16-27-4-6· Oct 2026
- Who oversees itIndiana Department of Health (IDOH)IC 16-27-4· Oct 2026
- License namePersonal Services Agency (PSA) LicenseIC 16-27-4-5· Oct 2026
- The rulesIC 16-27-4IC 16-27-4· Oct 2026
- First license fee$250IC 16-27-4-6(d)· Oct 2026
- License lasts1 yearIC 16-27-4-6(h)· Oct 2026
- BondNoneIC 16-27-4· Oct 2026
- Owner/manager trainingNo state minimumIC 16-27-4· Oct 2026
- Caregiver trainingNo state minimumIC 16-27-4-16· Oct 2026
- Background checksExpanded or national criminal history check for owners and managers (with the application) and for every caregiver (IC 16-27-2)IC 16-27-2-3 to -5; IC 20-26-2-1.5· Oct 2026
- How long it takes60-90 DaysBest guess — not confirmed yet
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This guide is for informational purposes only and does not constitute legal, regulatory, or business advice. Licensing requirements, fees, and regulations change frequently. Always verify current requirements with your state's licensing agency before making business decisions. HomeCareAtlas is not responsible for the accuracy or completeness of this information.
Researched and reviewed by
John Helmy, Founder of HomeCareAtlasBuilding tools and resources to help home care agency owners navigate licensing, compliance, and growth.