Heat the oven to 425°F. Mix ground chicken, egg, breadcrumbs, 1/4 cup Parmesan, meatball salt and basil just until combined. Shape into 24 small meatballs and arrange on a parchment-lined baking sheet.
Bake for 14 to 18 minutes until the meatballs reach 165°F. Meanwhile, warm oil in a saucepan, stir garlic for 30 seconds and add tomatoes, water, oregano and sauce salt; simmer for 10 minutes.
Boil macaroni in water with the tablespoon salt until 3 minutes short of the package time, then drain. Lower the oven to 375°F.
Fold macaroni and cooked meatballs gently into the sauce and transfer to a deep 9-by-13-inch baking dish. Scatter with mozzarella and remaining Parmesan.
Cover with foil and bake for 20 minutes, then uncover for 8 to 10 minutes until the center reaches 165°F and the cheese has browned patches.
Rest for 10 minutes and serve each portion with several meatballs.