New Jersey’s home care industry, increasingly powered by digital platforms, remote patient monitoring, virtual visits, and online caregiver coordination, is poised for major updates in 2026. These changes are driven by state workforce investments, federal Medicare adjustments, telehealth policy deadlines, and improvements in health information exchange, all aimed at improving access, affordability, and care quality for seniors and people with disabilities.
A landmark change takes effect January 1, 2026: the minimum wage for personal care assistants (PCAs) serving Medicaid clients in New Jersey rises to $23 per hour. This significant boost, part of a multi-year agreement, addresses severe workforce shortages and aims to stabilize the home care workforce that supports both in-person and digitally coordinated services.
The Centers for Medicare & Medicaid Services (CMS) finalized its 2026 Home Health Prospective Payment System rule, resulting in a net payment decrease of approximately 1.3% compared to 2025. This includes a 2.4% market basket update offset by behavioral adjustments under the Patient-Driven Groupings Model (PDGM). Home health agencies and digital platforms that rely on efficient virtual and remote care models will need to adapt to these tighter reimbursements.
Key Medicare telehealth waivers extended during the pandemic—including the ability to receive non-behavioral health services from home via video or audio-only—are set to expire after January 30, 2026, unless Congress acts to extend them further. This looming deadline could restrict virtual home care visits, pushing more reliance on in-person services starting in February 2026 and challenging hybrid online-home care models in New Jersey.
New Jersey’s health information exchange, known as NJSHINE, continues to expand in 2026 with a focus on secure, patient-controlled data sharing. A state-mandated study on granular patient consent options for data sharing is due by September 30, 2026. Enhanced breach notification requirements and stricter privacy protections will further support secure digital collaboration among home care agencies, telehealth providers, and hospitals.
Starting in 2026, New Jersey insurers must cover biomarker testing without prior authorization and eliminate step therapy requirements for certain chronic conditions. Health care facilities that facilitate home care transitions must also equip at least one exam room with accessible tables and scales by January 1, 2026, improving equity for older adults and people with disabilities who rely on digital-supported in-home services.
The 2026 changes reflect New Jersey’s commitment to strengthening home care through better caregiver pay, secure data sharing, and continued use of technology. However, the potential end of Medicare telehealth flexibilities presents a significant challenge. Providers using online platforms and virtual care tools should closely monitor federal developments, maximize the new wage investments, and leverage NJSHINE to meet growing demand for high-quality, tech-enabled home care.
