The Pharmaceutical Assistance to the Aged and Disabled (PAAD) program stands as New Jersey’s flagship prescription assistance initiative, providing critical financial relief to nearly 118,000 residents who struggle with medication costs. This state-funded program transforms prescription affordability for eligible seniors and individuals with disabilities, offering substantial savings that make essential medications accessible.
Eligibility and Income Requirements
To qualify for PAAD, applicants must be New Jersey residents who are either 65 years or older, or between ages 18-64 and receiving Social Security Title II Disability benefits. The program has generous income limits for 2025: $53,446 for single applicants and $60,690 for married couples. Notably, the program does not consider assets when determining eligibility, and U.S. citizenship is not required.
Prescription Cost Structure
PAAD dramatically reduces prescription expenses through a simple copayment system. Beneficiaries pay just $5 for each generic drug prescription and $7 for each brand-name drug prescription. This represents significant savings compared to standard retail prices, and participants may pay even less for generics if their Medicare Part D plan offers lower copayments.
Comprehensive Coverage
The program covers FDA-approved prescription drugs, insulin and insulin supplies, and syringes and needles for injectable medicines used to treat multiple sclerosis. However, PAAD does not cover diabetic testing supplies like test strips and lancets, as these are typically covered by Medicare Part B. Only medications purchased within New Jersey from manufacturers that provide rebates to the state are eligible for coverage.
Medicare Integration
A unique aspect of PAAD is its seamless integration with Medicare Part D. All Medicare-eligible PAAD beneficiaries must enroll in a Medicare Part D Prescription Drug Plan, but the state often pays the monthly premiums for basic plans at or below the regional benchmark. This dual coverage ensures participants receive comprehensive prescription benefits while maintaining their low PAAD copayments.
Application Process
Applying for PAAD is straightforward through the NJSave online application system at aging.nj.gov. For those without computer access, paper applications are available. Most beneficiaries need to renew every two years, though some require annual renewal. The program provides extensive support through its toll-free hotline at 1-800-792-9745, where trained staff assist with applications, renewals, and questions about coverage.
PAAD represents New Jersey’s commitment to ensuring that prescription medications remain affordable for its most vulnerable residents, bridging the gap between Medicare coverage and out-of-pocket costs that might otherwise force individuals to choose between medications and other necessities.