Prescriptions Too Costly? PAAD and Senior Gold in NJ
New Jersey's PAAD program caps most prescriptions at $5 for generics and $7 for brands for people with 2026 income under $54,943 single. Senior Gold helps the next income band up. Here is how both work with Part D in 2027.
Key takeaways
- PAAD (Pharmaceutical Assistance to the Aged and Disabled) is a New Jersey program. Members pay $5 for each covered generic and $7 for each covered brand-name prescription.
- PAAD income limits for 2026: under $54,943 single or $62,390 married. You must be 65 or older, or 18 to 64 and getting Social Security disability, and live in New Jersey.
- Senior Gold covers the next band: 2026 income from $54,943 to $64,943 single, or $62,390 to $72,390 married. You pay $15 plus 50% of the remaining cost of each drug.
- Both require a Medicare Part D plan. PAAD pays the premium for certain basic plans at or below the regional benchmark. The 2027 New Jersey basic plans at or below it are Wellcare Classic (PDP) ($24.30) and Humana Basic Rx Plan (PDP) ($28.30).
- You apply for both through the state's NJSave application, online or on paper, or call 1-800-792-9745.
If you live in New Jersey and your prescriptions take a big bite out of your budget, two state programs are worth checking before you pick a 2027 drug plan: PAAD and Senior Gold.
They are not Medicare. They are New Jersey programs that work on top of your Medicare Part D plan, lowering what you pay at the pharmacy. The income limits are higher than most people expect, and many people who would qualify have never applied.
Here is how each program works, the 2026 income limits the state publishes, how they fit with the 2027 New Jersey Part D plans, and how to apply.
What is PAAD and who qualifies?
PAAD is a state-funded program that lowers prescription costs for older and disabled New Jersey residents. According to the state PAAD page, you may qualify if you live in New Jersey, are 65 or older (or 18 to 64 and receiving Social Security disability benefits), and your 2026 income is less than $54,943 if single or $62,390 if married.
- PAAD copay, each covered generic
- $5
- PAAD copay, each covered brand-name drug
- $7
- 2026 income limit, single
- $54,943
- 2026 income limit, married
- $62,390
PAAD covers prescription drugs, insulin and insulin supplies, and needles and syringes for injectable multiple sclerosis drugs. It does not pay for diabetic testing supplies such as test strips and lancets, which Medicare Part B covers instead. Drugs bought outside New Jersey are not covered.
How does PAAD work with a 2027 Part D plan?
PAAD members with Medicare must enroll in a Part D plan. PAAD pays the monthly premium for certain basic Part D plans priced at or below the regional benchmark, and PAAD or the plan pays costs above the $5 or $7 copay. For 2027 the New Jersey benchmark is $36.28 a month, and two basic plans sit at or below it.
| Plan | 2027 monthly premium | 2027 deductible |
|---|---|---|
| Wellcare Classic (PDP) | $24.30 | $700 |
| Humana Basic Rx Plan (PDP) | $28.30 | $700 |
Source: CMS Medicare Advantage and Part D Landscape, Contract Year 2027.
- Enhanced plans: if you choose an enhanced plan priced at or below the benchmark, PAAD pays the premium as long as the plan follows PAAD billing rules.
- Medicare Advantage: you need a plan with drug coverage, and PAAD contributes up to the benchmark amount toward the drug part of your premium.
- Drug not on the list: if your Part D plan does not cover a drug, you switch to one it does cover, or your doctor asks the plan for an exception.
What is Senior Gold?
Senior Gold is a second state program for people whose income is just above the PAAD limits. According to the state Senior Gold page, you pay $15 plus 50% of the remaining cost of each covered drug. Once your out-of-pocket costs pass $2,000 in the year (single) or $3,000 (married couple), you pay a flat $15 per prescription for the rest of that eligibility period.
| PAAD | Senior Gold | |
|---|---|---|
| Income, single | Less than $54,943 | $54,943 to $64,943 |
| Income, married | Less than $62,390 | $62,390 to $72,390 |
| What you pay per drug | $5 generic, $7 brand | $15 plus 50% of the remaining cost |
| After a spending threshold | Not applicable | $15 flat after $2,000 single or $3,000 married |
| Part D premium | Paid for certain basic plans at or below the benchmark | You pay it to your plan |
| Reapply | Most every two years | Every year |
Source: Pharmaceutical Assistance to the Aged and Disabled (PAAD).
Senior Gold members must have Part D, pay their own Part D premium, and pay any Part D late enrollment penalty. If you have other drug coverage equal to or better than Senior Gold, you are not eligible.
How do I apply for PAAD or Senior Gold?
Use the state's NJSave application. One application screens you for PAAD, Senior Gold, the Medicare Savings Programs, Extra Help, Lifeline utility assistance and the Hearing Aid Assistance to the Aged and Disabled program. It is online, or you can ask for a paper copy by calling 1-800-792-9745.
- Have your income figures ready for you and your spouse.
- Have your Medicare card and your current Part D plan details.
- Apply online through NJSave or on paper.
- Watch for your card. Senior Gold says to expect an ID card within 30 days if eligible.
- Renew on time. A renewal form arrives about four months before your card expires.
The bottom line
If your 2026 income is under $64,943 single or $72,390 married, check PAAD and Senior Gold before you choose a 2027 drug plan. PAAD members pay $5 or $7 a prescription, and PAAD pays the premium for certain basic plans at or below the $36.28 New Jersey benchmark. Apply through NJSave or call 1-800-792-9745.
Frequently asked questions
What is the PAAD income limit for 2026?
Less than $54,943 for a single person or less than $62,390 for a married couple, according to the New Jersey Division of Aging Services.
How much do PAAD members pay for prescriptions?
$5 for each covered generic drug and $7 for each covered brand-name drug. You may pay less for a generic if your Part D plan charges less than $5.
Do I need Medicare Part D if I have PAAD?
Yes. PAAD members who are eligible for Medicare must enroll in a Part D plan. PAAD pays the premium for certain basic plans at or below the regional benchmark.
What is the difference between PAAD and Senior Gold?
Senior Gold is for the next income band up: $54,943 to $64,943 single or $62,390 to $72,390 married in 2026. You pay $15 plus 50% of each drug's remaining cost, then a flat $15 after $2,000 (single) or $3,000 (married) out of pocket.
Sources
- Pharmaceutical Assistance to the Aged and Disabled (PAAD) New Jersey Department of Human Services, Division of Aging Services
- Senior Gold Prescription Discount Program New Jersey Department of Human Services, Division of Aging Services
- NJSave Programs New Jersey Department of Human Services, Division of Aging Services
- CMS Medicare Advantage and Part D Landscape, Contract Year 2027 Centers for Medicare & Medicaid Services
Please note: We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.Garden State Medicare Solutions is not connected with or endorsed by the United States government or the federal Medicare program. Medicare has neither endorsed nor reviewed this information. This article is general information, not medical, tax or legal advice.
