New Jersey:
Personal Preference Program (PPP)

PPP is not the same as DDD self-direction

PPP sits within NJ FamilyCare’s personal-care pathway. New Jersey’s Division of Developmental Disabilities also has self-directed options, but its vendor transitions and service rules are separate. The distinction matters when families receive a notice naming Acumen or another organization: do not move PPP payroll solely because a DDD communication names a different vendor. If a person receives support through both systems, ask the MCO care manager and DDD support coordinator to clarify which service and budget each organization administers.

PCA eligibility comes before a self-directed budget

DMAHS requires NJ FamilyCare eligibility, approval for PCA services and a need expected to last at least six months. The participant must be able to direct services or have an authorized representative. An assessment considers help with personal tasks and relevant household activities. Children are evaluated individually, taking developmental milestones and parental responsibilities into account. A diagnosis alone does not set the budget. Prepare descriptions of specific daily assistance and ask how the assessment translates those needs into authorized services.

Separate enrollment from a fiscal-intermediary transition

PPP’s current state page identifies Palco for Horizon NJ Health and PPL for the other listed plans. A vendor transition is not the same event as a new clinical approval. Keep notices about both processes, especially if changing MCOs. Ask the outgoing and incoming organizations which dates, worker records and timesheets they will handle. No single completion period is verified here. If payroll is delayed, identify whether the obstacle is eligibility, authorization, enrollment paperwork or a correctly submitted payment record.

Decide who employs and who provides the care

The fiscal intermediary supports employment administration, including payroll and employer-related costs, but the participant retains important responsibilities. For a child whose parent will be the paid worker, the state FAQ requires a different authorized representative to manage the program. Discuss conflicts of roles before completing forms. Have the worker complete required employment documentation, including work-authorization verification, and ask for the written approved rate. Build backup care into the spending plan rather than spending the entire allocation on an unsupported assumption about wages.

Live-in EVV exceptions still need documentation

The state’s fiscal-transition FAQ says PPP retains an EVV exemption for live-in workers when the required documentation is completed and kept current. That does not remove payroll records or authorization limits. Ask the assigned intermediary what replaces clock-in records for the approved exception and how hours are approved. Report hospital or nursing-facility stays and changes in Medicaid eligibility to the MCO. The official page also requests reporting trips abroad and extended absences from New Jersey; ask how a planned absence affects your own services.

Your next steps

1. Apply for NJ FamilyCare if needed, then contact the health plan for an assessment.
2. Request PPP options counseling and identify the participant or authorized representative who will direct services.
3. Confirm the MCO’s current fiscal intermediary and build a spending and backup-care plan.
4. Enroll the chosen worker and complete all employment and any live-in-exemption documents.
5. Check the authorized start date, wage, record-submission method and who approves each payroll period.

Explore a pay scenario

The table uses a hypothetical amount of $18.00 per hour. This is not a rate verified for this state. Approved units depend on the assessment and written plan; the table does not establish a maximum or entitlement.

Monthly average = weekly × 52 ÷ 12. Overtime and taxes are not calculated.

Does caregiver pay qualify for IRS Notice 2014-7?

IRS Notice 2014-7 can exclude certain qualifying Medicaid waiver payments from federal gross income when the care recipient lives in the provider’s home. Sharing a home alone is not enough: the payment and program must qualify. This is not an exemption for all caregiver wages, all taxes or all state programs. Ask payroll which payments are covered and check the IRS guidance or a qualified tax adviser. Our calculator does not apply a tax exemption.

Questions families ask

Official sources and review notes

• DMAHS: Personal Preference Program and current FI table
• DMAHS: PPP fiscal intermediary transition FAQ, Version II
• DMAHS: PPP fact sheet
• DMAHS: PPP operations policy manual

Sources describe the named programs; they do not endorse this website. Rules and provider arrangements can change. Check the linked agency before making a financial decision.