New Jersey News: Take Action and Support Home Care Reform Legislation

The New Jersey Legislature continues to move forward with legislation that would make several significant updates to the State’s regulatory framework governing health care service firms, including many private duty home care agencies operating in New Jersey.

Senate Bill 3463 (S3463), sponsored by Senators Gordon Johnson (D-37) and Anthony Bucco (R-25), was introduced earlier this year and referred to the Senate Health, Human Services and Senior Citizens Committee. On May 11, 2026, the committee voted to release the bill favorably by a bipartisan 7-0 vote, with one member not voting. The legislation has now advanced to Second Reading in the Senate and will be heard tomorrow, Thursday, May 28.
 
The Assembly companion bill, A4790, sponsored by Assemblymen Roy Freiman (D-16) and Chris Tully (D-38), was introduced in March and remains pending before the Assembly Health Committee.
 
HCAOA-New Jersey strongly supports this legislation because it attempts to modernize portions of the current law that many providers view as unnecessarily burdensome and costly, while preserving oversight and consumer protections under the State’s existing registration system administered by the Division of Consumer Affairs (DCA).
 
Among the bill’s most notable provisions are changes to the financial reporting and audit requirements imposed on health care service firms. Specifically, the legislation would:

• Increase the Medicaid reimbursement threshold triggering periodic audits for personal care assistance services from $250,000 to $500,000.
• Require firms to submit required audits no later than September 30 of the applicable calendar year.
• Revise financial reporting requirements for firms with less than $10 million in gross income.
• Modify the information required within annual reports submitted by health care service firms.
• Permit corrective action opportunities in certain cases involving financial viability concerns.
• Allow audits to be performed by Certified Public Accountants licensed in any U.S. jurisdiction, rather than limiting firms to New Jersey-licensed CPAs.
• Clarify regulatory authority as the home care marketplace evolves, including with respect to internet-based referral and platform business models.

 
For home care providers, these changes would have meaningful operational implications. The increase in the Medicaid audit threshold alone would reduce compliance costs and administrative burden for smaller and mid-sized agencies. Likewise, allowing out-of-state CPAs to perform audits could provide agencies with greater flexibility and potentially lower audit expenses in a highly specialized compliance environment.
 
The bill is also notable because it does not dismantle or weaken New Jersey’s existing oversight structure for health care service firms. Instead, it seeks to preserve the current registration and accreditation framework while updating requirements that many providers believe no longer reflect the realities of today’s home care market.
 
Importantly, the legislation also attempts to address the growing complexity of newer business and referral models entering the home care space. That issue has become increasingly important as policymakers and regulators evaluate how consumer protections, accountability standards, and enforcement authority apply across different care delivery structures.
 
HCAOA-New Jersey has been extremely engaged on this issue and continues to advocate for a regulatory framework that protects consumers while allowing legitimate home care providers to operate efficiently and continue serving vulnerable New Jersey residents.
 
Many thanks to our New Jersey Chapter leaders and HCAOA’s lobbyist Dennis Marco and his team at Porzio Government Affairs.
 
HCAOA will continue monitoring the bill closely as it moves through the legislative process and will provide additional updates as developments occur.

In the meantime, please ask your New Jersey senator and assemblyperson to support these bills in their respective chambers.

We encourage all New Jersey providers to stay informed, share their experiences, and act to support these much-needed reforms. If you have any questions, please contact HCAOA Director of Government Relations Allison Cramer or join our monthly Government Relations Office Hours. These informal drop-in sessions offer members an opportunity to ask questions, share challenges, and discuss policy and advocacy issues.

WRITE YOUR LEGISLATOR