# NJ Personal Preference Program: Consumer-Directed Medicaid Home Care in New Jersey
In standard Medicaid home care, the state authorizes your hours and an agency assigns your caregiver. You don’t choose who comes to your home.
The Personal Preference Program (PPP) changes that. It is New Jersey’s consumer-directed home care option — a Medicaid-funded program that gives eligible individuals the ability to hire, train, schedule, and (in some cases) pay a caregiver of their own choosing, including a family member.
This guide explains what the PPP is, who qualifies in northern NJ, and whether hiring a family member as a paid caregiver is an option for your family.
What Is the Personal Preference Program (PPP)?
The Personal Preference Program is a New Jersey Medicaid program that puts the individual — not an agency — in charge of managing their own home care. It is sometimes called “consumer-directed care” or “self-directed care.”
Under the PPP:
- The Medicaid-eligible individual (or a designated representative) acts as the “employer” of their personal care assistant
- They recruit, hire, train, and supervise their own caregiver
- They manage scheduling and can adjust hours within the authorized budget
- A fiscal management service handles payroll, taxes, and compliance — the individual does not manage the money directly
The PPP is distinct from standard PCA or HHA services, where the agency employs the aide and controls scheduling. In the PPP, the individual has significantly more control.
Who Qualifies for the PPP in New Jersey?
To participate in the Personal Preference Program in NJ, an individual must:
1. Have active NJ Medicaid (NJFamilyCare)
Medicaid enrollment is required.
2. Qualify for Personal Care Aide or Home Health Aide services
The individual must already be eligible for Medicaid home care based on their assessed needs — requiring assistance with activities of daily living (ADLs) such as bathing, dressing, grooming, meals, and mobility.
3. Be able to self-direct (or have a designated representative)
The PPP requires the individual to direct their own care or designate a representative (usually a trusted family member) to do so. Individuals with significant cognitive impairment may have difficulty meeting this requirement, though a representative can be named.
4. Live in the community
Must reside at home, not in a nursing facility or assisted living.
5. NJ residency
Must be a current NJ resident.
Can a Family Member Be Paid as a Caregiver Under the PPP?
This is the question most families ask first — and the answer in New Jersey is: yes, in many cases.
Under the PPP, the participant can hire any qualified individual as their personal care assistant, including:
- A son, daughter, or other adult family member
- A neighbor or trusted community member
- A current unpaid caregiver who provides care already
Important restrictions:
- A legal spouse cannot be hired as a paid PPP caregiver
- The individual’s legal guardian cannot be paid through the PPP
- The hired family member must meet basic background check requirements
- The family member becomes a formal employee of the participant for PPP purposes — they receive a W-2 and their wages are subject to standard payroll withholding
For many families in northern NJ where a family member is already providing care full-time — often a daughter, son, or spouse’s sibling — the PPP provides a way to formalize and compensate that care through Medicaid funding.
How PPP Hours and Budget Are Determined
The PPP budget is based on the same needs assessment that determines standard PCA/HHA hours. The Medicaid MCO or, for Fee-for-Service Medicaid participants, the state, assesses the individual’s functional needs and authorizes a number of hours per week.
Within that authorized budget:
- The participant can adjust hours day-to-day as long as total hours stay within the weekly authorization
- The participant sets the schedule — mornings, evenings, weekends — based on actual need
- The pay rate for hired caregivers is set by NJ Medicaid (the fiscal management service communicates current rates)
The Role of the Fiscal Management Service
Because participants are technically the employer, they could be responsible for payroll taxes, workers’ compensation, and unemployment insurance. The PPP removes this burden through a Fiscal Management Service (FMS) — a Medicaid-contracted entity that:
- Processes payroll for the hired caregiver on the participant’s behalf
- Handles all tax withholding and employer tax obligations
- Manages workers’ compensation coverage
- Provides monthly budget statements
- Ensures compliance with NJ Medicaid PPP rules
The FMS handles the financial and administrative side so the participant can focus on managing their care.
PPP vs. Standard Agency-Directed Care: Key Differences
| | Personal Preference Program | Standard PCA/HHA Agency |
|—|—|—|
| Who hires the caregiver? | Participant (you) | Agency |
| Can a family member be hired? | Yes (with limits) | No |
| Scheduling flexibility | High — participant controls schedule | Lower — agency sets availability |
| Caregiver consistency | High — same caregiver you chose | Variable — agency assigns |
| Administrative burden | Moderate — FMS handles payroll | Low — agency handles all admin |
| Best for | Individuals who want control and have trusted caregivers | Individuals who prefer agency handles all logistics |
How to Apply for the PPP in Essex, Hudson, and Bergen County
Step 1: Verify Medicaid eligibility
Active NJFamilyCare is required. Priority Groups NJ can conduct a free screening.
Step 2: Determine service authorization
Contact your Medicaid MCO to request a needs assessment for personal care services. The assessment determines how many hours are authorized.
Step 3: Opt into PPP
Once PCA/HHA services are authorized, request enrollment in the Personal Preference Program through your MCO.
Step 4: Select a Fiscal Management Service
NJ Medicaid contracts with FMS entities to handle payroll for PPP participants. Your MCO can provide current FMS options in your county.
Step 5: Hire your caregiver
Select and hire your personal care assistant. Background check required. The FMS walks you through the hiring paperwork.
Step 6: Begin services
Your caregiver begins working on your schedule, paid through the FMS using your authorized Medicaid hours.
Getting Help in Newark, Jersey City, and Northern NJ
Navigating the PPP enrollment process — particularly for families who want to formalize a family caregiver arrangement — can be complex. Priority Groups NJ provides free guidance on PPP eligibility, Medicaid enrollment, and the transition from standard home care to consumer-directed care.
Call (201) 305-0936 for a free consultation. We serve Newark, East Orange, Irvington, Jersey City, Bayonne, Union City, Hoboken, Hackensack, Teaneck, Englewood, Fort Lee, Paterson, Clifton, Passaic, Elizabeth, Plainfield, and surrounding communities across Essex, Hudson, Bergen, Passaic, and Union counties.