Preserving Access to Affordable Drugs Act of 2004

Preserving Access to Affordable Drugs Act of 2004 - Amends part D (Voluntary Prescription Drug Benefit Program) of title XVIII (Medicare) of the Social Security Act, as amended by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, to: (1) allow employer contributions on drug costs to count towards the catastrophic limit; and (2) provide for direct subsidies for certain State pharmaceutical assistance programs.

Directs the Secretary of Health and Human Services to ensure that employer-based plans receive the same subsidization as the Medicare prescription drug plans.

Amends SSA title XIX (Medicaid), as amended by the Medicare Prescription Drug Improvement, and Modernization Act of 2003, to ensure that States can provide supplemental Medicaid prescription drug coverage to complement the Medicare drug benefit for seniors who are dually eligible for Medicare and Medicaid.

Repeals the comparative cost adjustment program under Medicare.

Amends SSA title XVIII part D, as amended by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, to allow the provision of wrap-around prescription drug coverage through Medigap.