PAAD and Senior Gold Prescription Programs in New Jersey

Prescription Costs Add Up Fast

When you're managing a parent's long-term care budget in New Jersey, medication costs can quietly drain thousands of dollars a year — especially for seniors taking multiple prescriptions. Medicare Part D helps, but copays, deductibles, and the coverage gap still leave significant out-of-pocket costs.

New Jersey runs two state-funded prescription assistance programs that wrap around Medicare Part D and dramatically reduce what seniors pay at the pharmacy. If your parent isn't enrolled, they may be leaving real money on the table.

PAAD: Pharmaceutical Assistance to the Aged and Disabled

PAAD is the more generous of the two programs. It covers NJ residents age 65+ (or those receiving Social Security disability benefits) with income below the program threshold.

2026 income limits:

• Single: annual income below $54,943 ($4,578/month)
• Married: annual income below $62,390 ($5,199/month)

There is no asset limit. PAAD looks only at income, not savings or property.

What PAAD covers:

• Copays capped at $5 for generic drugs and $7 for brand-name drugs
• PAAD reduces the enrollee's share after Medicare Part D coverage, subject to program rules

PAAD can substantially reduce out-of-pocket costs during the Medicare Part D coverage gap and caps copays at the program amounts above.

Senior Gold: The Next Tier Up

If your parent's income is just above the PAAD limit, Senior Gold covers the next bracket.

2026 income limits:

• Single: annual income between $54,943 and $64,943
• Married: annual income between $62,390 and $72,390

What Senior Gold covers:

• A $15 flat copay plus 50% of the remaining cost for each prescription
• Once the enrollee's total annual out-of-pocket spending reaches a threshold, the copay drops to a flat $15 for the rest of the year

Senior Gold is less generous than PAAD, but it still significantly reduces prescription costs compared to Medicare Part D alone.

How to Enroll

Both programs are administered through New Jersey's unified NJSave application. Use the current NJSave instructions for any other state assistance programs.

You can apply:

• Online through the NJ Department of Human Services website
• By mail using the NJSave application form
• By phone through the PAAD/NJSave program's current contact channel
• In person through a county office that accepts NJSave applications

Processing times and the effective date of benefits depend on the program's current rules and the completeness of the application.

Why This Matters for Long-Term Care Planning

PAAD and Senior Gold don't directly affect Medicaid eligibility — they're separate programs with separate income limits. But they reduce the monthly cash outflow for medications, which matters in two scenarios:

Before Medicaid: If your parent is still in the Medicaid application process or paying privately for care, lower prescription costs free up funds for nursing home patient pay or home care expenses.

Community spouse protection: If the healthy spouse is living at home while the applicant receives Medicaid nursing home care, PAAD or Senior Gold can reduce the spouse's medication costs — preserving more of the Minimum Monthly Maintenance Needs Allowance ($2,705 base in 2026) for other expenses.

PAAD and Senior Gold may be used alongside other NJ benefits, but confirm compatibility and application rules for each program.

For the full picture of paying for long-term care in New Jersey — including Medicaid eligibility, asset protection, and every state program your parent may qualify for — our New Jersey Medicaid Long-Term Care & Asset Protection Guide covers the complete landscape.

See more New Jersey guides →