LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 3
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: JUNE 19, 2023
SUMMARY
Synopsis: Revises income eligibility criteria for PAAD and Senior Gold
Prescription Discount Program; requires system of automatic
enrollment for Senior Gold Prescription Discount Program.
Type of Impact: Annual State expenditure increase.
Agencies Affected: Department of Human Services.
Office of Legislative Services Estimate
Fiscal Impact
Annual State Cost Increase At least $11.6 million to $13.9 million
 The Office of Legislative Services (OLS) estimates that State expenditures will increase by a
minimum of $11.6 million to $13.9 million annually in order to implement the revised income
eligibility criteria for the Pharmaceutical Assistance to the Aged and Disabled (PAAD)
Program and the Senior Gold Prescription Discount (Senior Gold) Program. Generally, the
higher income thresholds will increase enrollment under both programs, and hence the cost of
providing benefits. This estimate assumes that existing staff levels will be capable of
processing the additional applications generated under this bill.
 Additional indeterminate costs will be incurred by the State to implement revised income
eligibility criteria under the Hearing Aid Assistance to the Aged and Disabled (HAAD)
Program, which is required by law to have the identical income threshold as the PAAD
Program.
 Other indeterminate costs incurred by the Department of Human Services under the bill may
include one-time expenditures to establish an automatic enrollment process for the Senior Gold
Program and annual expenditures for mailing supplies and postage to contact certain Senior
Gold Program automatic enrollees who have not submitted a NJSAVE application. To the
extent that existing resources and infrastructure can be used to accomplish these provisions,
these cost may be reduced.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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BILL DESCRIPTION
This bill revises the income eligibility criteria for the PAAD Program and the Senior Gold
Program. Specifically, an applicant with an income equal to or less than 400 percent of the federal
poverty level, whether single or married, is eligible for the PAAD Program. In 2023, 400 percent
of the federal poverty level for an individual is $58,320 and $78,880 if married. By comparison,
currently, an applicant with an income less than $42,142 if single or less than $49,209 if married
will qualify for the PAAD Program. Under current law, the HAAD Program is required to have
the same income eligibility criteria as the PAAD Program.
Additionally, the bill increases the Senior Gold Program income threshold to capture all seniors
and individuals with disabilities above the PAAD Program income cap of 400 percent of the
federal poverty level. Currently, an applicant with an income between $42,142 and $52,142 if
single or between $49,209 and $59,209 if married qualifies for the Senior Gold Program.
The bill also requires the Department of Human Services to establish a system of automatic
enrollment in the Senior Gold Program, in which any New Jersey resident 65 years of age or older,
who presents at a pharmacy that is participating in the program to purchase a prescription drug, is
automatically enrolled in the program. The bill directs the department to mail individuals an
NJSAVE application if the department does not receive the individual’s application with a certain
timeframe.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that State expenditures will increase by a minimum of $11.6 million to
$13.9 million annually in order to implement the revised income eligibility criteria for the PAAD
Program and the Senior Gold Program. The PAAD and Senior Gold programs are State-funded
prescription drug programs, which help low- to middle-income New Jersey residents, who are age
65 or older or between ages 18 and 64 and receiving Social Security Disability benefits, with the
cost of their prescription drugs. Generally, the higher income thresholds will increase enrollment
under both programs, and hence the cost of providing benefits. This estimate assumes that existing
staff levels will be capable of processing the additional applications generated under this bill.
The bulk of this expenditure increase, or $9.5 million, will cover additional benefit expenses
under the Senior Gold Program due to the bill’s provision raising income eligibility for the program
to all seniors and individuals with disabilities with incomes above 400 percent of the federal
poverty level. This estimate is based upon State income tax filing data, as well as national data
regarding pharmaceutical coverage, and assumes that 24,000 new enrollees will enter the program
under the bill. The average yearly cost per beneficiary is projected to be $447.53 based on program
information in the FY 2024 Governor’s Budget.
The remainder of the increase, between $2.1 million and $3.9 million, is attributable to
additional State costs under the PAAD Program to increase the program’s income eligibility up to
400 percent of the federal poverty level. The FY 2024 Governor’s Budget proposes increasing the
PAAD income threshold by $10,000 for both individuals and couples and projects that under this
initiative, program costs will increase by $1.3 million and enrollment will grow by 1,520
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beneficiaries. Under the bill, the PAAD income threshold is to increase by $16,178 for individuals
and $29,671 for couples, which is projected to increase enrollment under the bill by between 2,459
and 4,510 beneficiaries.
Current law requires that the income limit for the HAAD Program is to be identical to the
PAAD Program; therefore, the State will also experience an indeterminate increase in costs under
the bill due to enrollment growth in the HAAD program. For reference, the HAAD Program
provides an annual $500 reimbursement to offset the purchase of a hearing aid, or $1,000 for the
purchase of two hearing aids.
In addition to the benefit costs for the PAAD, Senior Gold, and HAAD programs, the OLS
concludes that the Department of Human Services may incur one-time costs to implement a system
of automatic enrollment in the Senior Gold Program. Currently, the department relies on a claims
submission system to communicate with participating pharmacies regarding Senior Gold benefits.
To the extent that the department utilizes this existing infrastructure to establish this system, costs
will be reduced. Other annual State costs may be incurred to contact certain Senior Gold automatic
enrollees who have not submitted a NJSAVE application. These costs will include such things as
mailing supplies and postage.
Section: Human Services
Analyst: Sarah Schmidt
Lead Research Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).


Statutes affected:
Introduced: 30:4D-21, 30:4D-45