Health insurance companies in New Mexico might soon have to cover the costs of medical cannabis. This change is thanks to a new bill, House Bill 527, which is making its way through the state legislature.
Sponsored by Representative Cristina Parajón from Bernalillo, this bill aims to change several laws to require both public and private health insurers to cover medical cannabis costs. This includes policies for individuals, state workers, and notably, Medicaid recipients.
Recently, lawmakers voted 5-2 to pass the bill out of the Health and Human Services Committee. It now moves to the Appropriations and Finance Committee before it can be voted on by the full House.
If passed, health insurers would need to cover a three-month supply of medical cannabis for qualified patients. The supply amount will be set by the state’s Department of Health. Patients can obtain this cannabis from licensed dispensaries. Insurers would either pay the dispensary directly or reimburse the patient.
As of July 2024, about 79,400 patients are enrolled in New Mexico’s medical cannabis program. This number has been declining, partly because recreational cannabis was legalized in April 2022, which often leads to fewer people enrolling in medical programs. At its peak in May 2022, patient enrollment was around 135,000.
The decline in active patients has mirrored trends in other states where recreational use is allowed. For example, Washington’s medical cannabis sales dropped to just 1% of the total market after adult-use sales began.
Experts believe that if House Bill 527 passes, it could help increase both patient enrollment and sales figures for medical cannabis. In states with similar policies, like those addressing opioid use, insurance coverage has made a significant difference in patient access.
A fiscal impact report for House Bill 527 estimates that the average monthly cost of medical cannabis for cancer patients is around $80. With many patients using Medicaid, this could cost the state’s general fund over $40 million annually. However, New Mexico’s dispensaries generated over $143.6 million in medical cannabis sales in 2024, indicating the potential for a robust market.
Despite the challenges presented by federal laws, including the classification of cannabis as a Schedule I drug, New Mexico is taking steps to ensure medical cannabis is accessible. Part of this includes adjusting how insurers process and reimburse for these costs.
This push for medical cannabis insurance coverage isn’t entirely new. In early 2022, Ultra Health, a prominent cannabis company in the state, reached out to insurance providers, asking them how they planned to address payments for medical cannabis. They argued that it aligns with existing laws intended to make behavioral health medications more affordable.
H.B. 527 is a significant step in the evolving conversation about health care and cannabis, potentially setting a precedent for other states to follow. As the legislative session concludes around March 22, the fate of this bill hangs in the balance, with its implications poised to change many lives in New Mexico.
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