PAAD, Senior Gold and Medicare help: how NJ seniors save
One New Jersey application can cut your prescription copays to $5, pay your Medicare premium and add $225 a year for utilities. Here is who qualifies in 2026.
New Jersey has some of the most generous prescription and Medicare help in the country. Plenty of people who qualify never apply. Some assume their income is too high. Others think the paperwork will be a nightmare. In most cases, one application called NJSave covers everything.
This guide explains five programs that can lower what you pay for medicine, Medicare and utilities. It also shows how to apply once and get screened for all of them.
What help is available, and who is it for?
Here are the 2026 income limits at a glance. All of these programs are for New Jersey residents. The state programs (PAAD, Senior Gold and Lifeline) require you to be 65 or older, or 18 to 64 and receiving Social Security disability benefits.
| Program | What it does | 2026 income limit (single / married) |
|---|---|---|
| PAAD | Prescriptions for $5 generic, $7 brand | Under $54,943 / under $62,390 |
| Senior Gold | Prescriptions for $15 plus half the remaining cost | $54,943 to $64,943 / $62,390 to $72,390 |
| Lifeline | $225 a year toward utility costs | Same as PAAD |
| Medicare Savings Programs | Pays your Medicare Part B premium, and sometimes more | Up to $21,546 / $29,214 (QI level), with an asset limit |
| Extra Help | Lowers Part D premiums and drug copays | About $1,995 a month / $2,705 a month, with an asset limit |
How do PAAD and Senior Gold work?
PAAD
Pharmaceutical Assistance to the Aged and Disabled (PAAD) is the big one. If your income is under $54,943 as a single person or under $62,390 as a married couple, you pay $5 for each covered generic prescription and $7 for each covered brand name drug. If your Part D plan charges less than $5 for a generic, you pay the lower amount.
PAAD works alongside Medicare. If you have Medicare, you must be enrolled in a Part D drug plan. PAAD then pays the monthly premium for certain basic Part D plans priced at or below the regional benchmark. If you are in a Medicare Advantage plan, PAAD contributes up to the benchmark amount toward the drug part of your premium.
PAAD covers prescription drugs, insulin and insulin supplies. It does not pay for diabetic testing supplies such as strips and lancets. Those go through Medicare Part B. You cannot get PAAD if you have Medicaid, or if you have other coverage that is as good or better.
Senior Gold
Senior Gold picks up where PAAD leaves off. It serves people whose income is up to $10,000 above the PAAD limit. You pay $15 plus 50% of the remaining cost of each covered prescription. Once your out-of-pocket costs pass $2,000 in a year ($3,000 for a married couple), you pay a flat $15 per prescription for the rest of your eligibility period. Unlike PAAD, Senior Gold does not pay your Part D premium. You must reapply every year.
Medicare open enrollment runs October 15 to December 7. If you are on PAAD and pick a Part D plan priced above the benchmark, you may owe part of the premium yourself. Free, unbiased counselors at the State Health Insurance Assistance Program (SHIP) can compare plans with you. Call 1-800-792-8820.
What is Lifeline utility assistance?
Lifeline pays eligible residents $225 a year toward gas and electric costs. The age, disability and income rules match PAAD. If you qualify for PAAD, you very likely qualify for Lifeline too, and the same NJSave application screens you for both. It is a modest amount, but it arrives every year as long as you stay eligible.
If your utility bills are a bigger problem, Lifeline is only the start. Our guide to food and utility help covers heating aid, bill discounts and free weatherization.
Can the state pay my Medicare premium?
Yes, through the Medicare Savings Programs. In 2026, the standard Part B premium is $202.90 a month. That is about $2,435 a year coming out of your Social Security check. These programs can take it off your plate.
| Program | What it pays | 2026 annual income limit (single / couple) |
|---|---|---|
| QMB (Qualified Medicare Beneficiary) | Part A and Part B premiums, plus deductibles, coinsurance and copays for covered services | $15,960 / $21,640 |
| SLMB (Specified Low-Income Medicare Beneficiary) | Part B premium | $19,152 / $25,968 |
| QI (Qualifying Individual) | Part B premium | $21,546 / $29,214 |
New Jersey's Division of Aging Services lists an asset limit of $9,950 for a single person and $14,910 for a couple. Ask which savings and property count when you apply. You do not need to qualify for full Medicaid to get one of these programs.
There is a bonus. If you are enrolled in any Medicare Savings Program, you automatically qualify for Extra Help with drug costs too.
What is Extra Help?
Extra Help, also called the Part D Low Income Subsidy, is a federal program run through Social Security. It lowers or eliminates your Part D premium and deductible and caps your copays. In 2026, people with full Extra Help pay no more than $5.10 for a generic and $12.65 for a brand name drug, and some pay even less.
For 2026, the income limits are about $1,995 a month for one person and $2,705 a month for a couple. The resource limits are $18,090 for one person and $36,100 for a couple. Social Security does not count every dollar of income or every asset, so apply even if you are a little over.
If you get PAAD, apply for Extra Help as well. The two programs work together, and NJSave covers both.
How do I apply with NJSave?
NJSave is New Jersey's single application for older adults and people with disabilities. One form enrolls eligible people in PAAD, Senior Gold, Lifeline, the Medicare Savings Programs, Extra Help and the Hearing Aid Assistance to the Aged and Disabled program. It also screens you for heating aid, the Universal Service Fund and SNAP food benefits.
You can apply online through the NJSave application. A paper version is available if you do not use a computer. Call 1-800-792-9745 and ask for one to be mailed.
- Gather proof of income. Bring your Social Security award letter or SSA-1099, pension statements, and recent bank statements showing interest.
- Find your Medicare card. You will need your Medicare number and your Part D plan name if you have one.
- List your assets. Have bank, savings and investment balances handy for the Medicare Savings Programs and Extra Help.
- Apply once. Complete NJSave online or on paper. Answer every question, even if you think a program does not apply to you.
- Watch your mail. If approved for PAAD or Senior Gold, you should receive an ID card. Respond quickly to any request for more documents.
Say you are 77, live alone, and your only income is $1,300 a month from Social Security, or $15,600 a year. You have about $6,000 in savings. That puts you under the QMB limit, so the state could pay your Part B premium and your Medicare cost sharing. QMB brings Extra Help with it. The same NJSave application also checks you for PAAD and Lifeline, which could bring copays down to $5 and $7 and add $225 a year.
Say you are both retired, with combined income of $68,000 from Social Security and a pension. That is above the PAAD limit for couples but inside the Senior Gold range. You would keep your own Part D plan and premium, pay $15 plus half the remaining cost of each prescription, and drop to $15 per prescription after spending $3,000 in a year.
What mistakes should I avoid?
- Not applying because you think you earn too much. The PAAD limit is far higher than most people expect. Senior Gold goes higher still.
- Skipping the renewal. Most PAAD members renew every two years. Senior Gold members renew yearly. The form arrives about four months before your card expires. If it has not come at least two months before, call 1-800-792-9745.
- Picking a Part D plan on price alone. Check that your drugs are on the plan's list. If a drug is not covered, PAAD will not cover it either until your doctor requests an exception or you switch drugs.
- Forgetting to report changes. A new pension, a move or a death in the family can change your eligibility.
- Trusting cold callers. No legitimate program will call you out of the blue to sell you a plan or ask for your Medicare number.
For free, one-on-one help, call SHIP at 1-800-792-8820 or the Aging and Disability Resource Connection at 1-877-222-3737. If you suspect Medicare fraud, the New Jersey Senior Medicare Patrol is at 1-732-777-1940, extension 1117.
New to Medicare? Start with our guide to turning 65 in New Jersey and our comparison of Medicare Advantage and Medigap.
Common questions
Do I need a Medicare Part D plan to get PAAD?
Yes, if you have Medicare. PAAD pays the premium for certain basic plans at or below the regional benchmark and then limits your copays to $5 generic and $7 brand.
Can I get PAAD and a Medicare Savings Program at the same time?
Many people qualify for more than one program. NJSave screens you for all of them at once and sorts out how they fit together with your other coverage.
What is the difference between QMB, SLMB and QI?
QMB has the lowest income limit and pays Part A and B premiums plus most Medicare cost sharing. SLMB and QI pay only the Part B premium but allow higher income.
How long does approval take?
If you are approved for Senior Gold, you should receive an ID card within about 30 days. Respond quickly to any letter asking for documents to avoid delays.
This guide is for general information. Program rules and income limits change, so confirm with the official source before you apply.
