PAAD and Senior Gold in New Jersey: Help With Drug Costs

PAAD (Pharmaceutical Assistance to the Aged and Disabled) and Senior Gold are New Jersey programs that help pay for prescriptions on top of your Medicare drug coverage. For 2026, PAAD is for New Jersey residents with income under $54,943 if single or $62,390 if married, and it brings covered prescriptions down to $5 for a generic and $7 for a brand-name drug. Senior Gold picks up just above those limits, up to $64,943 single or $72,390 married, with a copay of $15 plus half of the remaining cost. Both require you to be enrolled in a Medicare Part D plan, so the plan you choose matters. This guide explains who qualifies, what each program pays and how to apply.

Who qualifies in 2026

Both programs share the same basic rules on who can apply. You must be a New Jersey resident, and either 65 or older, or between 18 and 64 and receiving Social Security Disability benefits. What separates them is income.

Source: Senior Gold Prescription Discount Program, 2026.

What PAAD costs you

PAAD keeps your share of each covered prescription low: $5 for each covered generic drug and $7 for each covered brand-name drug.

PAAD members who are eligible for Medicare are required to enroll in a Medicare Part D plan. PAAD then works alongside that plan. PAAD pays the monthly premium for certain standard basic Part D plans whose premium is at or below the regional benchmark, the dollar amount Medicare sets each year for low-income drug coverage in the state. For 2027, CMS lists New Jersey's low-income benchmark amount as $36.28 a month, and the two basic standalone plans priced below it are Wellcare Classic ($24.30) and Humana Basic Rx Plan ($28.30) (CMS 2027 Landscape). PAAD's own page does not print the yearly benchmark, so confirm your plan with the PAAD hotline.

If you choose an enhanced plan that is at or below the benchmark premium, PAAD says it pays that premium as long as the plan follows its billing requirements. If you are in a Medicare Advantage plan, PAAD contributes up to the regional benchmark amount toward the prescription part of your total premium.

PAAD rules worth knowing before you fill a prescription

• Only FDA-approved drugs are covered, and they must be bought in New Jersey from manufacturers that give rebates to the state.
• A first prescription is limited to a 34-day supply. Refills can cover up to 34 days or 100 unit doses, whichever is greater.
• When a brand-name drug has an approved generic, the brand usually needs prior authorization from your prescriber, with some exceptions.
• Diabetic testing supplies are not covered by PAAD. If you have Part B or other insurance that pays for them, the pharmacy must bill that insurer.
• Most members renew every two years, and some must reapply yearly. If your renewal form has not arrived at least two months before your card expires, call the hotline.

What Senior Gold costs you

Senior Gold is for people whose income is a little too high for PAAD. For each covered drug you pay $15 plus 50 percent of the remaining cost. Once your yearly out-of-pocket costs pass $2,000 for a single person or $3,000 for a married couple, you pay only a flat $15 copay per prescription for the rest of that eligibility period.

All Senior Gold members who are eligible for Medicare must participate in Part D, so Senior Gold works with your Part D plan rather than replacing it.

Source: Senior Gold Prescription Discount Program, 2026.

How these programs fit with the Part D cap

Medicare Part D now has a yearly out-of-pocket cap: $2,100 in 2026 and $2,400 in 2027 (CMS). Once your own Part D spending reaches the cap, you pay nothing more for covered Part D drugs that year. PAAD and Senior Gold sit on top of your Part D plan, which is why choosing a plan that lists your drugs and works with the program still matters: the right pairing keeps your costs low from the first fill, not just after the cap.

If your income is low enough for Extra Help (in 2026, under $23,940 single or $32,460 married, per Social Security), apply for that too. Our guide to Extra Help and Medicare Savings Programs in New Jersey has the details.

A related benefit: help buying hearing aids (HAAAD)

If you are in PAAD, you may also be able to get help with hearing aids through New Jersey's Hearing Aid Assistance to the Aged and Disabled program (HAAAD). It reimburses up to $500 for one hearing aid, or up to $1,000 for two, per calendar year. You must have hearing loss, meet the same age or disability rules, and have 2026 income no greater than $54,943 single or $62,390 married. You need to be enrolled in PAAD or the Lifeline program, or complete an NJSave application first.

HAAAD does not reimburse if Medicaid, another health insurer or retirement benefits already cover your hearing aids, and it does not pay for batteries or repairs. A new application is needed for each calendar year you buy a hearing aid. Our guide to hearing aids and Medicare covers the rest of the picture.

How to apply

• Apply for PAAD and Senior Gold with the NJSave application, online or on paper. One NJSave application can also screen you for Medicare Savings Programs and other state help.
• For questions or a paper application, call the toll-free hotline at 1-800-792-9745.
• Have your income figures for the year, your Medicare card and your Part D or Medicare Advantage card ready.
• Keep your approval letter and give your PAAD or Senior Gold card to your pharmacy along with your Part D card.

What Jackie checks for you

Jackie looks at your drug coverage and the state program together, because the plan choice and the program rules affect each other:

• Whether your income fits PAAD or Senior Gold for 2026, and whether a Medicare Savings Program or Extra Help could also apply.
• Which 2027 Part D plans are basic plans priced at or below the $36.28 benchmark, so PAAD can cover the premium.
• If you prefer Medicare Advantage, how much of the drug portion of the premium PAAD would contribute.
• Whether each of your prescriptions is on the plan's 2027 drug list, and any prior authorization or quantity limits.
• Whether you fill prescriptions out of state, since PAAD covers New Jersey purchases.

Questions to ask

• Am I already enrolled in PAAD, and when does my card expire?
• Is my current Part D plan one that PAAD pays the premium for in 2027?
• Does my retiree or union plan give drug coverage equal to or better than PAAD?
• If my income rises next year, would I move from PAAD to Senior Gold?

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The bottom line

If you are a New Jersey resident on Medicare with 2026 income under $54,943 single or $62,390 married, PAAD can bring prescriptions to $5 or $7 and may pay your Part D premium when you pick the right plan. Just above those limits, Senior Gold halves your drug costs. Apply through NJSave or call 1-800-792-9745, then let Jackie help you match a 2027 drug plan to the program at no cost: call or text (856) 727-4221.