For many older adults, the cost of prescription medications can become a significant financial burden. Even with Medicare Part D, seniors may still face premiums, deductibles, copayments, and other out-of-pocket prescription drug expenses.
What many New Jersey seniors may not realize is that New Jersey has a state program called Pharmaceutical Assistance to the Aged and Disabled (PAAD) that can substantially reduce the cost of prescription medications for eligible residents.
And perhaps surprisingly, many seniors who may qualify for PAAD have never heard of it.
What Is PAAD?
The Pharmaceutical Assistance to the Aged and Disabled (PAAD) program is a New Jersey state-funded program designed to help eligible seniors and individuals with disabilities pay for prescription medications.
For 2026, PAAD is available to New Jersey residents who are:
- 65 years of age or older, or
- Between ages 18 and 64 and receiving Social Security Disability benefits; and
- Meet the applicable income requirements.
For 2026, an applicant’s annual income must be less than $54,943 for a single person or less than $62,390 for a married couple. Importantly, PAAD does not have a resource or asset limit, which means that having savings or other assets does not, by itself, disqualify someone from receiving PAAD benefits.
How Much Can PAAD Save You on Prescription Drugs?
PAAD can make a substantial difference in what an eligible person pays for covered prescription medications.
Under the 2026 program, the PAAD copayment is generally:
- $5 for each covered generic prescription
- $7 for each covered brand-name prescription
Medicare and/or PAAD can pay costs above those PAAD copayments for covered medications. PAAD also helps with certain Medicare Part D prescription drug plan premiums.
For an older adult taking several prescription medications every month, the savings can add up quickly.
Do You Have to Have Medicare Part D?
If you are eligible for Medicare, you generally must enroll in a Medicare Part D prescription drug plan to receive PAAD benefits.
PAAD works together with Medicare Part D. For certain qualifying Part D plans, PAAD can pay the monthly premium, and PAAD can help cover prescription costs above the applicable PAAD copayment.
This makes PAAD particularly important for seniors who are already enrolled in Medicare but are struggling with the increasing cost of their prescription medications.
What If Your Income Is Too High for PAAD?
Not everyone who needs prescription assistance will fall within the PAAD income limits.
New Jersey also has a Senior Gold Prescription Discount Program for certain residents whose income is above the PAAD limits but still falls within the Senior Gold eligibility range.
For 2026, Senior Gold is available to qualifying single applicants with annual income between $54,943 and $64,943, and to qualifying married couples with annual income between $62,390 and $72,390. Medicare-eligible Senior Gold beneficiaries must also participate in Medicare Part D.
Therefore, if your income is too high for PAAD, that does not necessarily mean that you are out of options.
How Do You Apply for PAAD?
New Jersey uses the NJSave application to determine eligibility for PAAD and several other assistance programs. An applicant can complete the NJSave application online or submit a paper application.
The New Jersey Department of Human Services also provides information about PAAD eligibility, benefits and applications.
New Jersey PAAD information and application resources
Why Should Families Know About PAAD?
Prescription drug costs are often overlooked when families are planning for the long-term care and financial needs of an aging parent.
A senior may have Medicare, Social Security, retirement income and savings and still struggle to afford the medications prescribed by his or her doctors.
PAAD is one of the programs that should be considered when evaluating an older person’s overall financial situation.
It is also important to remember that eligibility for government assistance programs can change based on income, marital status, Medicare coverage and other circumstances. A person who does not qualify for one program may qualify for another.
For families caring for an aging parent, understanding available assistance programs can be an important part of planning for the present and the future.
Don’t Assume You Make Too Much Money
One of the biggest mistakes a senior or family member can make is simply assuming that he or she will not qualify for assistance.
The 2026 PAAD income limit for a single applicant is less than $54,943, which means that some New Jersey seniors with Social Security, pension or other retirement income may qualify even though they would not consider themselves “low income.”
And because PAAD does not impose a resource limit, having savings or other assets does not automatically prevent an otherwise eligible person from qualifying.
If you or an aging parent is struggling with the cost of prescription medications, it may be worth investigating PAAD and the other assistance programs available through New Jersey.
If you are looking for additional information about PAAD, prescription drug assistance, Medicaid, Medicare, or planning for the financial and legal needs of an aging parent, please contact Fredrick P. Niemann, Esq. at (732) 863-9900 or email him at fniemann@hnlawfirm.com. Please ask us about our video conference or telephone consultations if you are unable to come to our office.
By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, NJ Elder Care Attorney