NJ Personal Preference Program: How to Get Paid as a Family Caregiver

You have been bathing your mother, managing her medications, and rearranging your work schedule for months. Meanwhile, a home-care agency would bill Medicaid over $30 an hour for the same tasks. New Jersey's Personal Preference Program (PPP) closes that gap — it lets your parent hire you as their paid caregiver through Medicaid.

PPP is the self-directed track within New Jersey's Managed Long Term Services and Supports (MLTSS) system. Instead of receiving care from an agency-assigned aide, your parent manages a monthly cash budget and hires the caregiver of their choice — including a spouse, adult child, or other relative.

Who Qualifies for PPP

PPP is not a standalone program. Your parent must already be enrolled in MLTSS and receiving agency Personal Care Assistant (PCA) services for at least six months before they can request a transition. The eligibility requirements:

• Clinical: Must meet Nursing Facility Level of Care (NFLOC) — typically needing hands-on help with at least three Activities of Daily Living
• Financial: Gross monthly income at or below $2,982 (a Qualified Income Trust can bridge a small overage), countable assets at or below $2,000
• Self-direction capacity: The participant or their Authorized Representative must be able to manage employer duties — hiring, scheduling, and approving timesheets

The Authorized Representative (AR) handles the employer role when a parent has diminished cognitive capacity. The AR can be a family member, but the person being paid as the caregiver cannot also serve as the AR. That means you need at least three people involved: your parent, the paid caregiver, and the AR.

How the Monthly Budget Works

Your parent's MCO care manager sets the PPP monthly cash budget based on their existing PCA assessment. If the MCO authorized 30 hours per week of agency care, the budget converts that allocation into a dollar amount you manage directly.

You use this budget to pay yourself (or another chosen caregiver) an hourly wage for personal care tasks: bathing, dressing, meal preparation, medication reminders, and mobility assistance. The budget can also cover some care-related supplies.

Setting Up Payroll Through Palco or PPL

New Jersey contracts with Fiscal Intermediaries — Palco and Public Partnerships (PPL) — to handle the employer paperwork. These organizations process:

• Federal and state payroll tax withholding
• Workers' compensation insurance
• Background check coordination
• IRS forms SS-4 and 2678 for employer registration

Your parent (or their AR) registers as the Employer of Record. The Fiscal Intermediary is not the employer — they handle the administrative mechanics so your family does not need to run a payroll system.

Electronic Visit Verification (EVV)

Every PPP caregiver in New Jersey must use Electronic Visit Verification to log their shifts. EVV is a mobile app that records when you clock in, clock out, and what tasks you performed. The MCO and state use this data to verify that authorized hours are actually being delivered.

EVV compliance is mandatory — missed or incomplete check-ins can trigger payment delays or service reviews. Set up the app during onboarding and confirm it works before your first paid shift.

The Timeline from Agency Care to PPP

Expect the transition to take 30 to 60 days. The sequence:

1. Request PPP from your parent's MCO care manager
2. MCO submits a referral to the Fiscal Intermediary (Palco or PPL)
3. Complete the onboarding packet and register as Employer of Record
4. Chosen caregiver passes a criminal background check and completes orientation
5. EVV tracking is set up on the caregiver's mobile device
6. First payroll cycle begins

During this transition, agency care continues — your parent is never left without services.

What PPP Pays and What It Does Not

PPP wages vary based on the MCO's authorized budget, but typically range from $13 to $18 per hour for personal care tasks. The program does not cover:

• Skilled nursing tasks (wound care, injections, catheter management)
• Room and board
• Medical equipment or prescriptions

If your parent needs skilled nursing alongside personal care, the MCO coordinates those services separately through a licensed Home Health Agency.

For families juggling caregiving with full-time work, PPP can turn an unsustainable situation into a compensated role. The New Jersey Home Care Guide walks through the full MLTSS enrollment process, PPP onboarding paperwork, and Fiscal Intermediary setup with printable checklists for each step.

See more New Jersey guides →