PAAD helps New Jersey residents 65 or older, or 18 to 64 on Social Security Title II disability, pay Medicare Part D drug costs if 2026 income is under $54,943 single or $62,390 married. Short for Pharmaceutical Assistance to the Aged and Disabled, it is the lower-income of New Jersey's two state pharmaceutical assistance programs. Senior Gold, the higher-income of the two, covers the band just above that line and lowers what you pay at the pharmacy counter. Both are state-funded coverage that wraps around a Part D plan rather than replacing it.

In This Guide

What PAAD and Senior Gold Are

PAAD and Senior Gold are New Jersey's State Pharmaceutical Assistance Programs, run by the New Jersey Division of Aging Services within the state Department of Human Services. New Jersey's own Medicare counseling page groups the two under that federal label. They are the state's version of a wider national picture of State Pharmaceutical Assistance Programs, which are state-funded programs that help older adults pay Medicare drug costs.

Two features define them. First, they are state-funded, not federally funded. Under federal Medicare rules, a qualifying State Pharmaceutical Assistance Program is defined by law and specifically excludes Medicaid and any program paid for with federal money. That is what separates PAAD and Senior Gold from Medicaid drug coverage and from federally funded assistance. It also separates them from New Jersey's federal PACE program (Program of All-Inclusive Care for the Elderly), which shares a similar-sounding name but is an unrelated managed-care program.

Second, they are wraparound coverage. Your Medicare Part D drug plan is always the first payer, and the state program pays second, helping with the premium or the cost-sharing your Part D plan leaves behind. Neither program replaces Part D. You keep your Part D plan, and PAAD or Senior Gold fills in around it.

The difference between the two is income and cost structure. PAAD serves the lower-income tier and does more, including paying the Part D premium. Senior Gold serves the tier just above PAAD and lowers what you pay at the pharmacy counter, but leaves the Part D premium to you.

Do You Qualify for PAAD or Senior Gold in 2026?

Both programs start from the same residency and age-or-disability test. You must be a New Jersey resident, and either 65 or older, or receiving Social Security Title II disability benefits (ages 18 to 64 for PAAD, 18 and over for Senior Gold).

What separates them is income, and New Jersey states each program's income test for a specific year. A denial in an earlier year does not settle the question, so check your income against the 2026 figures below.

For 2026, PAAD income must be less than $54,943 for a single applicant or less than $62,390 for a married couple. Senior Gold begins where PAAD ends: for 2026, income between $54,943 and $64,943 for a single applicant, or between $62,390 and $72,390 for a married couple. There is no separate application to choose between them. When you apply through NJSave, the state places you in the program your income fits.

Feature PAAD Senior Gold
Who it is for Lower-income tier Income just above PAAD
2026 income, single Less than $54,943 $54,943 to $64,943
2026 income, married Less than $62,390 $62,390 to $72,390
Age or disability 65+, or 18-64 on SSDI 65+, or 18+ on SSDI
You pay per drug $5 generic / $7 brand $15 plus 50% of the rest
Part D premium PAAD pays it (benchmark plans) You pay it
Catastrophic cap Not applicable Flat $15 after $2,000 single / $3,000 married

New Jersey reports that PAAD serves nearly 118,000 residents and Senior Gold nearly 18,000.

Other prescription coverage can rule you out. If you have health insurance or retirement benefits that provide prescription coverage equal to or better than PAAD, or if you are receiving Medicaid, you are not eligible for PAAD. Senior Gold applies the same equal-or-better test against its own coverage. If your other health insurance or retirement plan offers only limited or partial coverage, you can still be eligible.

What PAAD and Senior Gold Pay, and What You Pay

With PAAD, you pay a copayment of $5 for each covered generic drug and $7 for each covered brand-name drug. PAAD or your Medicare plan covers the rest, including the Part D premium for approved plans. If your Medicare drug plan charges you less than $5 for a generic, you pay the lower amount.

With Senior Gold, you pay $15 plus half of the remaining cost of each covered drug. Senior Gold has a built-in stop-loss: once your out-of-pocket spending passes $2,000 in a year for a single person, or $3,000 for a married couple, you pay only a flat $15 copayment per prescription for the rest of your eligibility period.

PAAD covers prescribed legend drugs, insulin and insulin supplies, and the needles and syringes for injectable multiple sclerosis medicines. Both programs are required by law to substitute an approved generic for a brand-name drug; to get the brand instead while the state program is the primary payer, your prescriber must request prior authorization.

How They Work With Medicare Part D

If you have Medicare, PAAD and Senior Gold sit on top of Medicare Part D rather than replacing it. Three federal rules govern how that stacking works, and they matter for your money.

Part D pays first. Federal regulation makes a Part D plan the primary payer relative to any State Pharmaceutical Assistance Program, so your plan adjudicates the claim and the state program wraps around it. New Jersey requires this directly: Medicare-eligible PAAD and Senior Gold beneficiaries must enroll in a Part D plan. For PAAD, the state pays the monthly premium for certain standard basic Part D plans priced at or below the regional benchmark. Senior Gold does not pay your premium, so you pay it directly to your Part D plan, and you are responsible for any Medicare Part D late enrollment penalty you owe.

State program payments count toward your out-of-pocket cap. Under federal rules, the drug costs a State Pharmaceutical Assistance Program pays on your behalf count as your own incurred costs toward the Part D annual out-of-pocket threshold. For 2025 and later years, costs reimbursed through insurance, a group health plan, or certain other third-party payment arrangements generally count toward that cap as well. Two things still do not add to the tally: the basic prescription drug coverage your own Part D plan or Medicare Advantage drug plan (MA-PD) provides, and manufacturer payments under the Medicare Part D Manufacturer Discount Program. So each PAAD or Senior Gold dollar spent on your drugs moves you closer to Medicare's out-of-pocket ceiling.

You get one plan change a year, not unlimited changes. Belonging to a qualified State Pharmaceutical Assistance Program gives you a Medicare special enrollment period, but it is limited: you may make one enrollment election per year, plus a two-month window if you lose program eligibility. If you use your election in March, you cannot use this special enrollment period to switch again later that year.

How to Apply

You apply for PAAD and Senior Gold with the same form. There is no separate PAAD application and Senior Gold application; the state routes you based on your income.

  • Apply online through NJSave, New Jersey's single application for aging and disability benefits. A paper application is available if you do not have computer access.
  • Call the toll-free hotline at 1-800-792-9745 for help or a status check.
  • Watch your mail for renewals. Most PAAD beneficiaries submit a renewal application every two years, though some must reapply every year; Senior Gold beneficiaries reapply every year. A renewal form arrives about four months before your card expires, so call the hotline if you have not received one at least two months before it expires.

New Jersey's free State Health Insurance Assistance Program (SHIP) counselors can help you weigh your Part D plan options at no cost, from counseling sites in all 21 counties; SHIP also helps beneficiaries with limited income apply for programs such as Medicaid, the Medicare Savings Program, and Extra Help.

PAAD and Senior Gold vs. Extra Help

PAAD and Senior Gold are state programs. Extra Help, also called the Part D Low-Income Subsidy, is a separate federal program run by Social Security that also lowers Part D costs. They are not the same, and for many New Jersey seniors the answer is to pursue both.

Extra Help uses tighter, federal income and asset limits. PAAD and Senior Gold reach higher up the income scale, with 2026 limits running as high as $64,943 for a single Senior Gold applicant, so a senior who earns too much for Extra Help may still qualify for a state program. A SHIP counselor can screen you for both. If you qualify for Extra Help, applying for it first generally makes sense, with the state program layered around it.

Frequently Asked Questions

Are PAAD and Senior Gold the same program?

No. They are two separate New Jersey programs with different income bands and different pharmacy costs: PAAD charges $5 for a covered generic and $7 for a covered brand-name drug, while Senior Gold charges $15 plus half of what is left. One NJSave application covers both, and the state places you based on your income.

Do I have to keep Medicare Part D if I have PAAD or Senior Gold?

Yes. If you are eligible for Medicare, both programs require you to enroll in a Part D plan. Part D pays first, and the state program wraps around it. For PAAD, the state pays the Part D premium for approved benchmark plans; for Senior Gold, you pay the premium yourself.

Does PAAD pay for diabetic test strips and lancets?

No. PAAD does not pay for diabetic testing supplies such as test strips and lancets. If you have other coverage that pays for them, such as Medicare Part B, your pharmacy must bill that plan instead.

Can I get both Extra Help and a New Jersey program?

Often, yes. Extra Help is a federal Part D subsidy with tighter limits; PAAD and Senior Gold are state programs that reach higher incomes. Many seniors qualify for both and layer them. A SHIP counselor can screen you for each.

Does PAAD or Senior Gold let me switch Part D plans whenever I want?

No. Belonging to a state program gives you one Medicare plan change per year, plus a short window if you lose program eligibility. It is not an unlimited right to switch plans mid-year.

Learn More

MedicareState Pharmaceutical Assistance ProgramsThirteen states run a State Pharmaceutical Assistance Program (SPAP) that helps pay Medicare Part D drug costs. See which states, and how a SPAP works. MedicareMedicare Part DMedicare Part D in 2026: a $2,100 out-of-pocket cap, no donut hole, three benefit phases, the $615 deductible, premiums, the late penalty, and Extra Help. MedicareMedicare Extra HelpMedicare Extra Help can cut Part D drug costs to a few dollars a prescription. See 2026 income and resource limits, what it pays, and how to apply. MedicareMedicare Creditable CoverageWhat creditable prescription drug coverage means, the 63-day rule, what counts, and how to avoid the Medicare Part D late enrollment penalty in 2026. MedicareMedicare Late Enrollment PenaltiesWorried you missed a Medicare deadline? Here is how the Part A, B, and D late enrollment penalties are calculated, how long each lasts, and how to avoid them.

Find personalized help understanding New Jersey PAAD and Senior Gold prescription assistance at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.

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Brevy Care Team

Expert eldercare guidance from Brevy's team of healthcare professionals and researchers.