How to Apply for PAAD in NJ

PAAD Cuts Prescription Costs to $5 and $7

PAAD — Pharmaceutical Assistance to the Aged and Disabled — is New Jersey's own prescription drug subsidy. It wraps around Medicare Part D to cap what your parent pays at the pharmacy: $5 for generics and $7 for brand-name drugs per prescription. No deductible. No coverage gap. And unlike the Medicare Savings Programs, PAAD has no asset test at all.

The income limits are surprisingly generous. For 2026, a single person qualifies with annual income below $54,943. A married couple qualifies below $62,390. That covers a lot of retirees who think they earn too much for government help.

Who Qualifies

Three requirements, all straightforward:

1. Age or disability: 65 or older, or between 18 and 64 and receiving Social Security Disability Insurance (SSDI)
2. NJ residency: Must live in New Jersey
3. Income: Below $54,943 single or $62,390 married (2026 figures)

No asset test. No bank statement review. No lookback. A retiree with $200,000 in savings qualifies as long as their annual income is under the threshold.

PAAD also requires enrollment in a Medicare Part D plan. If your parent isn't on Part D, they'll need to enroll during the next enrollment period (or qualify for a Special Enrollment Period). PAAD pays the monthly Part D premium for benchmark plans — your parent pays nothing for the plan itself.

How to Apply

The fastest route is through NJSave, the same portal used for Medicare Savings Programs. One application screens for PAAD, Senior Gold, MSPs, Extra Help, Lifeline, and hearing aid assistance.

Three ways to file:

• Online: through the NJSave portal
• Paper: download Form AP-2 and mail it to NJSave, PO Box 637, Trenton, NJ 08625
• Phone: call 1-800-792-9745 to request a mailed application

Unlike MSP applications, which may be processed centrally or routed to county agencies, PAAD applications stay with the Division of Aging Services for review. Processing is typically faster than QMB or SLMB.

Documents needed:

• Proof of age or disability
• Proof of NJ residency
• Income documentation (Social Security award letter, pension statements, tax return)
• Medicare card showing Part D enrollment (or willingness to enroll)

How PAAD Works at the Pharmacy

When your parent fills a prescription, the claim runs through a specific payment order:

1. Medicare Part D processes the claim first
2. Extra Help (if enrolled) subsidizes the Part D cost-sharing
3. PAAD wraps down whatever's left to the $5 or $7 copay

For a $200 brand-name medication, Part D and Extra Help might leave a $12.65 copay. PAAD pays $5.65 of that. Your parent hands over $7. Every time, regardless of the drug's retail price.

PAAD vs. Senior Gold

If income is above $54,943 (single) or $62,390 (married), your parent may still qualify for Senior Gold — the next tier up, which covers incomes up to $64,943 (single) or $72,390 (married). Senior Gold has higher copays ($15 plus 50% of the remaining balance). After qualifying out-of-pocket expenses exceed $2,000 for a single enrollee or $3,000 for a married couple, the copay becomes a flat $15 for each covered prescription for the rest of the eligibility period.

Renewals

PAAD cards are issued for one- or two-year periods. The Division of Aging Services mails a renewal packet about four months before expiration. Submit the renewal at least 45 days before the card expires to avoid a gap in coverage.

If a renewal or initial application is denied, the written appeal must be filed with the DoAS Appeals Unit within 20 days of the notice date.

The New Jersey Medicare Savings Programs, Extra Help & PAAD/Senior Gold Guide includes a PAAD eligibility worksheet and the full NJSave document checklist, so the application goes through the first time.

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