New Jersey Personal Preference Program: New Jersey 2026 Guide

New Jersey’s Personal Preference Program (PPP) is the self-directed version of Medicaid personal care assistance. Instead of an agency sending a worker, the participant receives a monthly budget and uses it to hire their own caregivers, who can include relatives and friends. PPP is part of NJ FamilyCare and is a state plan service, so MLTSS enrollment is not required; members in managed care have their plan arrange the assessment.

This page explains who can use the Personal Preference Program in 2026, how family members can be paid, what the program covers, how to apply, and how it fits with nursing home Medicaid. For the full statewide rules on income, assets, spouses and the look-back, see our New Jersey Medicaid guide.

Figures change periodically. Double-check current amounts before relying on them.

What the Personal Preference Program is

In PPP, the number of personal care hours a member is assessed as needing is turned into a cash budget. With help from a consultant, the participant writes a cash management plan that says who will be hired, what they will be paid and what else the budget will buy. A fiscal intermediary handles payroll, taxes and background checks. Participants who cannot manage the budget themselves can name a representative.

Programs like the Personal Preference Program let the person receiving care pick who helps them, frequently a family member or friend. Payroll and paperwork usually run through an agency, so the family does not act as an employer alone. Rules on which relatives can be paid differ; many programs allow adult children, fewer allow a spouse.

Who qualifies in 2026

Eligibility for the Personal Preference Program rests on two tests, care need and finances, plus an available slot. In general, an applicant must:

• be enrolled in NJ FamilyCare and eligible for personal care assistance, either through the state plan or MLTSS;
• need hands-on help with activities of daily living, as shown by a nursing assessment, with a need expected to last at least six months;
• live in the community, not in an institution;
• be able to direct their care, or have a representative who can; and
• agree to the program’s employer responsibilities, with help from the fiscal intermediary.

Income and assets. The financial side of the Personal Preference Program follows New Jersey’s long-term care Medicaid rules. Countable assets include bank accounts, investments and property other than the home, while the home, one car, personal belongings and certain burial funds are usually not counted. Gifts and below-value sales in the last 60 months are reviewed, and a transfer penalty can push back the start of services.

People in MLTSS meet New Jersey’s long-term care rules (in 2026, income of $2,982 a month or less, or a Qualified Income Trust, and $2,000 in countable assets for a single person). People using state plan personal care must meet the regular NJ FamilyCare rules for their group.

New Jersey’s 2026 long-term care Medicaid numbers, from our state guide:

Married applicants. When one spouse applies and the other stays at home, spousal impoverishment protections generally apply, so the spouse at home can keep a share of the couple’s assets and may receive part of the applicant’s income. The spousal allowance pages explain how these amounts are figured.

Services the Personal Preference Program can cover

Depending on assessed need, the Personal Preference Program can include:

• wages for caregivers the participant hires, including many relatives
• help with bathing, dressing, eating, toileting and mobility
• household tasks related to personal care
• items or services that replace human help, such as some appliances, when allowed in the cash management plan
• consultant support to write and update the plan
• payroll and tax handling by a fiscal intermediary

What is usually not covered. Payment is for care tasks in the plan, not for rent, food or household bills. Most caregiver pay is taxable, though some live-in payments are excluded from income.

How to apply for the Personal Preference Program

The steps below describe the usual path. Many people apply for Medicaid and request the waiver at the same time, so that the money and care tests run side by side.

1. Make sure the person is on NJ FamilyCare. For MLTSS, apply through the county Board of Social Services.
2. Request a personal care assessment from the managed care plan’s care manager, or the county ADRC, and say you want the Personal Preference Program.
3. A consultant contacts you to explain the program and help write the cash management plan.
4. Hire caregivers and complete paperwork with the fiscal intermediary.
5. Payments start once the plan is approved and timesheets are submitted.

Tips for the paperwork. Keep a folder of copies, and log every call with the date and name. Assessors only see one visit, so describe what a difficult day looks like and have a regular helper in the room. Cognitive problems and fall risk count toward need. If services are denied, the notice lists the deadline to appeal.

Waiting lists and timing

PPP has no separate enrollment waiting list for eligible members, but setting up the plan and onboarding caregivers takes time.

Getting on a list early, before a crisis, is usually wise. While waiting, other options can help: state plan personal care, adult day programs, PACE where offered, Older Americans Act services through the Area Agency on Aging, and family caregiver support. The waiver waiting lists page explains common rules.

How it relates to nursing home Medicaid

PPP serves people at home, many of whom meet a nursing facility level of care through MLTSS. If home care is no longer safe, the member can move to a nursing facility, and MLTSS continues to cover care.

the Personal Preference Program and nursing home Medicaid serve the same group of people; the difference is where care is given. Nursing home coverage cannot be capped, but waiver enrollment sometimes is. If care at home becomes unsafe, a participant can move to a nursing home and keep Medicaid, though the share of income paid toward care changes. Moving the other way is often given priority, and Money Follows the Person can help.

Planning ahead for the Personal Preference Program

Most families come to the Personal Preference Program during a change: a fall, a hospital stay, or a caregiver who can no longer keep up. Planning a little ahead makes each step easier. Start by writing down what help is needed each day, who provides it now, and what would happen if that person were unavailable for a week. The same list helps at the assessment and makes it clear where paid help matters most.

For the Medicaid application, collect bank statements, income notices, insurance cards, and proof of identity and New Jersey residence. If long-term care Medicaid may be needed later, five years of records will matter, so it helps to keep them now. Legal documents matter too. A durable power of attorney and a health care directive let a trusted person act on applications without a guardianship.

Check in on how the arrangement is working every few months; a reassessment can adjust hours or services. Notes on falls, hospital visits and new diagnoses make later reviews easier.

Tips for families

Family conversations about fairness, the caregiver’s career and backup plans help avoid conflict later. Track tasks and hours from the start. If a relative was paid privately before Medicaid, a written caregiver agreement matters, since undocumented payments can look like gifts. Plan for backup care when the caregiver is sick or away.

Working with a Certified Medicaid Planner is often the fastest way through the Personal Preference Program. A planner who handles New Jersey cases regularly can spot eligibility problems before NJ FamilyCare (DMAHS) does, organize the records and help plan around any wait. Typical fees vary widely: help with an application alone often runs about $500 to $6,000, full planning about $2,500 to $15,000 or more, and hourly advice about $150 to $600.

Related pages

• New Jersey Medicaid guide
• New Jersey FamilyCare MLTSS
• Paid family caregivers
• Consumer-directed care
• Caregiver agreements
• HCBS waivers explained
• In-home care and Medicaid

Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.