HOUSE BILL 527
57th legislature - STATE OF NEW MEXICO - first session, 2025
INTRODUCED BY
Cristina Parajón
AN ACT
RELATING TO INSURANCE; ENACTING NEW SECTIONS OF THE HEALTH CARE PURCHASING ACT, THE PUBLIC ASSISTANCE ACT AND THE NEW MEXICO INSURANCE CODE TO REQUIRE COVERAGE FOR AN ADEQUATE SUPPLY OF MEDICAL CANNABIS TO TREAT DEBILITATING CONDITIONS OF QUALIFIED PATIENTS; PROVIDING FOR DIRECT PAYMENT TO CANNABIS RETAILERS OR REIMBURSEMENT TO QUALIFIED PATIENTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Health Care Purchasing Act is enacted to read:
"[NEW MATERIAL] MEDICAL CANNABIS COVERAGE.--
A. As used in this section:
(1) "adequate supply" means an amount of cannabis, in any form approved by the department of health, possessed by a qualified patient that is determined by department of health rule to be no more than reasonably necessary to ensure the uninterrupted availability of cannabis for a period of three months and that is derived solely from an intrastate source;
(2) "cannabis":
(a) means all parts of the plant Cannabis containing a delta-9-tetrahydrocannabinol concentration of more than three-tenths percent on a dry weight basis, whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture or preparation of the plant, its seeds or its resin; and
(b) does not include the mature stalks of the plant; fiber produced from the stalks; oil or cake made from the seeds of the plant; any other compound, manufacture, salt, derivative, mixture or preparation of the mature stalks, fiber, oil or cake; the sterilized seed of the plant that is incapable of germination; the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink or another product; or hemp;
(3) "cannabis extract":
(a) means a product obtained by separating resins from cannabis by solvent extraction using solvents other than vegetable glycerin, such as butane, hexane, isopropyl alcohol, ethanol or carbon dioxide; and
(b) does not include the weight of any other ingredient combined with cannabis extract to prepare topical or oral administrations, food, drink or another product;
(4) "cannabis product":
(a) means a product that contains cannabis, including edible or topical products that may also contain other ingredients; and
(b) does not include the weight of any other ingredient combined with cannabis or cannabis extract to prepare topical or oral administrations, food, drink or another product;
(5) "cannabis retailer" means a person that sells cannabis products to consumers, pursuant to a license issued by the cannabis control division of the regulation and licensing department pursuant to the Cannabis Regulation Act;
(6) "coinsurance" means a cost-sharing method that requires an enrollee to pay a stated percentage of medical expenses after any deductible amount is paid; provided that coinsurance rates may differ for different types of services under the same individual or group health maintenance organization contract;
(7) "copayment" means a cost-sharing method that requires an enrollee to pay a fixed dollar amount when health care services are received, with the carrier paying the balance of the allowable amount; provided that there may be different copayment requirements for different types of services under the same individual or group health maintenance organization contract;
(8) "cost sharing" means a copayment, coinsurance, deductible or any other form of financial obligation of an enrollee other than a premium or a share of a premium, or any combination of any of these financial obligations, as defined by the terms of an individual or group health maintenance organization contract;
(9) "debilitating medical condition" means:
(a) cancer;
(b) glaucoma;
(c) multiple sclerosis;
(d) damage to the nervous tissue of the spinal cord, with objective neurological indication of intractable spasticity;
(e) seizure disorder, including epilepsy;
(f) positive status for human immunodeficiency virus or acquired immunodeficiency syndrome;
(g) admittance into hospice care in accordance with rules promulgated by the department of health;
(h) amyotrophic lateral sclerosis;
(i) Crohn's disease;
(j) hepatitis C infection;
(k) Huntington's disease;
(l) inclusion body myositis;
(m) inflammatory autoimmune-mediated arthritis;
(n) intractable nausea or vomiting;
(o) obstructive sleep apnea;
(p) painful peripheral neuropathy;
(q) Parkinson's disease;
(r) posttraumatic stress disorder;
(s) severe chronic pain;
(t) severe anorexia or cachexia;
(u) spasmodic torticollis;
(v) ulcerative colitis; or
(w) any other medical condition, medical treatment or disease as approved by the department of health;
(10) "generally accepted standards" means standards of care and clinical practice, including guidelines and recommendations from professional associations, that are generally recognized by health care providers practicing in relevant clinical specialties;
(11) "medical cannabis" means cannabis products used by a qualified patient or in accordance with the Lynn and Erin Compassionate Use Act; and
(12) "qualified patient" means a resident of New Mexico who holds a registry identification card pursuant to the Lynn and Erin Compassionate Use Act.
B. Group health coverage, including a form of self- insurance, offered, issued or renewed under the Health Care Purchasing Act shall provide coverage for:
(1) medical cannabis that is consistent with the coverage provided for medication that would otherwise be prescribed in accordance with generally recognized standards to treat the eligible insured's debilitating medical condition, including cost-sharing requirements; and
(2) an adequate supply of medical cannabis; provided that the eligible insured:
(a) is a qualified patient; and
(b) obtains cannabis from a cannabis retailer approved by the insurer.
C. The insurer shall provide:
(1) reimbursement to an eligible insured after the submission of a claim in accordance with the process established by the insurer's plan and in compliance with department of health rule; or
(2) direct payment to a cannabis retailer authorized by the insurer after submission of the claim in accordance with the process established by the insurer's plan and in compliance with department of health rule."
SECTION 2. A new section of the Public Assistance Act is enacted to read:
"[NEW MATERIAL] COVERAGE OF MEDICAL CANNABIS.--
A. As used in this section:
(1) "adequate supply" means an amount of cannabis, in any form approved by the department of health, possessed by a qualified patient that is determined by department of health rule to be no more than reasonably necessary to ensure the uninterrupted availability of cannabis for a period of three months and that is derived solely from an intrastate source;
(2) "cannabis":
(a) means all parts of the plant Cannabis containing a delta-9-tetrahydrocannabinol concentration of more than three-tenths percent on a dry weight basis, whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture or preparation of the plant, its seeds or its resin; and
(b) does not include the mature stalks of the plant; fiber produced from the stalks; oil or cake made from the seeds of the plant; any other compound, manufacture, salt, derivative, mixture or preparation of the mature stalks, fiber, oil or cake; the sterilized seed of the plant that is incapable of germination; the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink or another product; or hemp;
(3) "cannabis extract":
(a) means a product obtained by separating resins from cannabis by solvent extraction using solvents other than vegetable glycerin, such as butane, hexane, isopropyl alcohol, ethanol or carbon dioxide; and
(b) does not include the weight of any other ingredient combined with cannabis extract to prepare topical or oral administrations, food, drink or another product;
(4) "cannabis product":
(a) means a product that contains cannabis, including edible or topical products that may also contain other ingredients; and
(b) does not include the weight of any other ingredient combined with cannabis or cannabis extract to prepare topical or oral administrations, food, drink or another product;
(5) "cannabis retailer" means a person that sells cannabis products to consumers, pursuant to a license issued by the cannabis control division of the regulation and licensing department pursuant to the Cannabis Regulation Act;
(6) "coinsurance" means a cost-sharing method that requires an enrollee to pay a stated percentage of medical expenses after any deductible amount is paid; provided that coinsurance rates may differ for different types of services under the same individual or group health maintenance organization contract;
(7) "copayment" means a cost-sharing method that requires an enrollee to pay a fixed dollar amount when health care services are received, with the carrier paying the balance of the allowable amount; provided that there may be different copayment requirements for different types of services under the same individual or group health maintenance organization contract;
(8) "cost sharing" means a copayment, coinsurance, deductible or any other form of financial obligation of an enrollee other than a premium or a share of a premium, or any combination of any of these financial obligations, as defined by the terms of an individual or group health maintenance organization contract;
(9) "debilitating medical condition" means:
(a) cancer;
(b) glaucoma;
(c) multiple sclerosis;
(d) damage to the nervous tissue of the spinal cord, with objective neurological indication of intractable spasticity;
(e) seizure disorder, including epilepsy;
(f) positive status for human immunodeficiency virus or acquired immunodeficiency syndrome;
(g) admittance into hospice care in accordance with rules promulgated by the department of health;
(h) amyotrophic lateral sclerosis;
(i) Crohn's disease;
(j) hepatitis C infection;
(k) Huntington's disease;
(l) inclusion body myositis;
(m) inflammatory autoimmune-mediated arthritis;
(n) intractable nausea or vomiting;
(o) obstructive sleep apnea;
(p) painful peripheral neuropathy;
(q) Parkinson's disease;
(r) posttraumatic stress disorder;
(s) severe chronic pain;
(t) severe anorexia or cachexia;
(u) spasmodic torticollis;
(v) ulcerative colitis; or
(w) any other medical condition, medical treatment or disease as approved by the department of health;
(10) "generally accepted standards" means standards of care and clinical practice, including guidelines and recommendations from professional associations, that are generally recognized by health care providers practicing in relevant clinical specialties;
(11) "medical cannabis" means cannabis products used by a qualified patient or in accordance with the Lynn and Erin Compassionate Use Act; and
(12) "qualified patient" means a resident of New Mexico who holds a registry identification card pursuant to the Lynn and Erin Compassionate Use Act.
B. Medical assistance coverage provided pursuant to the Public Assistance Act shall provide coverage for:
(1) medical cannabis that is consistent with the coverage provided for medication that would otherwise be prescribed in accordance with generally accepted standards to treat the eligible enrollee's debilitating medical condition, including cost-sharing requirements; and
(2) an adequate supply, as established by department of health rule; provided that the eligible enrollee:
(a) is a qualified patient; and
(b) obtains cannabis from a cannabis retailer approved by the insurer.
C. Medical assistance coverage provided pursuant to the Public Assistance Act shall provide:
(1) reimbursement to an eligible enrollee after the submission of a claim in accordance with the process established by the department of health and in compliance with department rule; or
(2) direct payment to a cannabis retailer authorized by the department of health after submission of the claim in accordance with the process established by the department of health and in compliance with department rule."
SECTION 3. A new section of Chapter 59A, Article 22 NMSA 1978 is enacted to read:
"[NEW MATERIAL] MEDICAL CANNABIS COVERAGE.--
A. As used in this section:
(1) "adequate supply" means an amount of cannabis, in any form approved by the department of health, possessed by a qualified patient that is determined by department of health rule to be no more than reasonably necessary to ensure the uninterrupted availability of cannabis for a period of three months and that is derived solely from an intrastate source;
(2) "cannabis":
(a) means all parts of the plant Cannabis containing a delta-9-tetrahydrocannabinol concentration of more than three-tenths percent on a dry weight basis, whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture or preparation of the plant, its seeds or its resin; and
(b) does not include the mature stalks of the plant; fiber produced from the stalks; oil or cake made from the seeds of the plant; any other compound, manufacture, salt, derivative, mixture or preparation of the mature stalks, fiber, oil or cake; the sterilized seed of the plant that is incapable of germination; the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink or another product; or hemp;
(3) "cannabis extract":
(a) means a product obtained by separating resins from cannabis by solvent extraction using solvents other than vegetable glycerin, such as butane, hexane, isopropyl alcohol, ethanol or carbon dioxide; and
(b) does not include the weight of any other ingredient combined with cannabis extract to prepare topical or oral administrations, food, drink or another product;
(4) "cannabis product":
(a) means a product that contains cannabis, including edible or topical products that may also contain other ingredients; and
(b) does not include the weight of any other ingredient combined with cannabis or cannabis extract to prepare topical or oral administrations, food, drink or another product;
(5) "cannabis retailer" means a person that sells cannabis products to consumers, pursuant to a license issued by the cannabis control division of the regulation and licensing department pursuant to the Cannabis Regulation Act;
(6) "coinsurance" means a cost-sharing method that requires an enrollee to pay a stated percentage of medical expenses after any deductible amount is paid; provided that coinsurance rates may differ for different types of services under the same individual or group health maintenance organization contract;
(7) "copayment" means a cost-sharing method that requires an enrollee to pay a fixed dollar amount when health care services are received, with the carrier paying the balance of the allowable amount; provided that there may be different copayment requirements for different types of services under the same individual or group health maintenance organization contract;
(8) "cost sharing" means a copayment, coinsurance, deductible or any other form of financial obligation of an enrollee other than a premium or a share of a premium, or any combination of any of these financial obligations, as defined by the terms of an individual or group health maintenance organization contract;
(9) "debilitating medical condition" means:
(a) cancer;
(b) glaucoma;
(c) multiple sclerosis;
(d) damage to the nervous tissue of the spinal cord, with objective neurological indication of intractable spasticity;
(e) seizure disorder, including epilepsy;
(f) positive status for human immunodeficiency virus or acquired immunodeficiency syndrome;
(g) admittance into hospice care in accordance with rules promulgated by the department of health;
(h) amyotrophic lateral sclerosis;
(i) Crohn's disease;
(j) hepatitis C infection;
(k) Huntington's disease;
(l) inclusion body myositis;
(m) inflammatory autoimmune-mediated arthritis;
(n) intractable nausea or vomiting;
(o) obstructive sleep apnea;
(p) painful peripheral neuropathy;
(q) Parkinson's disease;
(r) posttraumatic stress disorder;
(s) severe chronic pain;
(t) severe anorexia or cachexia;
(u) spasmodic torticollis;
(v) ulcerative colitis; or
(w) any other medical condition, medical treatment or disease as approved by the department of health;
(10) "generally accepted standards" means standards of care and clinical practice, including clinical practice guidelines and recommendations from professional associations, that are generally recognized by health care providers practicing in relevant clinical specialties;
(11) "medical cannabis" means cannabis products used by a qualified patient or in accordance with the Lynn and Erin Compassionate Use Act; and
(12) "qualified patient" means a resident of New Mexico who holds a registry identification card pursuant to the Lynn and Erin Compassionate Use Act.
B. An individual or group health insurance policy, health care plan or certificate of health insurance delivered, issued for delivery or renewed in this state shall provide coverage for:
(1) medical cannabis that is consistent with the coverage provided for medication that would otherwise be prescribed in accordance with generally accepted standards to treat the eligible insured's debilitating medical condition, including cost-sharing requirements; and
(2) an adequate supply, as established by department of health rule; provided that the eligible insured:
(a) is a qualified patient; and
(b) obtains cannabis from a cannabis retailer approved by the insurer.
C. An insurer shall provide:
(1) reimbursement to an eligible insured after the submission of a claim in accordance with the process established by the insurer's plan and in compliance with department of health rule; or
(2) direct payment to a cannabis retailer authorized by the insurer after submission of the claim in accordance with the process established by the insurer's plan and in compliance with department of health rule."
SECTION 4. A new section of Chapter 59A, Article 23 NMSA 1978 is enacted to read:
"[NEW MATERIAL] MEDICAL CANNABIS COVERAGE.--
A. As used in this section:
(1) "adequate supply" means an amount of cannabis, in any form approved by the department of health, possessed by a qualified patient that is determined by department of health rule to be no more than reasonably necessary to ensure the uninterrupted availability of cannabis for a period of three months and that is derived solely from an intrastate source;
(2) "cannabis":
(a) means all parts of the plant Cannabis containing a delta-9-tetrahydrocannabinol concentration of more than three-tenths percent on a dry weight basis, whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture or preparation of the plant, its seeds or its resin; and
(b) does not include the mature stalks of the plant; fiber produced from the stalks; oil or cake made from the seeds of the plant; any other compound, manufacture, salt, derivative, mixture or preparation of the mature stalks, fiber, oil or cake; the sterilized seed of the plant that is incapable of germination; the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink or another product; or hemp;
(3) "cannabis extract":
(a) means a product obtained by separating resins from cannabis by solvent extraction using solvents other than vegetable glycerin, such as butane, hexane, isopropyl alcohol, ethanol or carbon dioxide; and
(b) does not include the weight of any other ingredient combined with cannabis extract to prepare topical or oral administrations, food, drink or another product;
(4) "cannabis product":
(a) means a product that contains cannabis, including edible or topical products that may also contain other ingredients; and
(b) does not include the weight of any other ingredient combined with cannabis or cannabis extract to prepare topical or oral administrations, food, drink or another product;
(5) "cannabis retailer" means a person that sells cannabis products to consumers, pursuant to a license issued by the cannabis control division of the regulation and licensing department pursuant to the Cannabis Regulation Act;
(6) "coinsurance" means a cost-sharing method that requires an enrollee to pay a stated percentage of medical expenses after any deductible amount is paid; provided that coinsurance rates may differ for different types of services under the same individual or group health maintenance organization contract;
(7) "copayment" means a cost-sharing method that requires an enrollee to pay a fixed dollar amount when health care services are received, with the carrier paying the balance of the allowable amount; provided that there may be different copayment requirements for different types of services under the same individual or group health maintenance organization contract;
(8) "cost sharing" means a copayment, coinsurance, deductible or any other form of financial obligation of an enrollee other than a premium or a share of a premium, or any combination of any of these financial obligations, as defined by the terms of an individual or group health maintenance organization contract;
(9) "debilitating medical condition" means:
(a) cancer;
(b) glaucoma;
(c) multiple sclerosis;
(d) damage to the nervous tissue of the spinal cord, with objective neurological indication of intractable spasticity;
(e) seizure disorder, including epilepsy;
(f) positive status for human immunodeficiency virus or acquired immunodeficiency syndrome;
(g) admittance into hospice care in accordance with rules promulgated by the department of health;
(h) amyotrophic lateral sclerosis;
(i) Crohn's disease;
(j) hepatitis C infection;
(k) Huntington's disease;
(l) inclusion body myositis;
(m) inflammatory autoimmune-mediated arthritis;
(n) intractable nausea or vomiting;
(o) obstructive sleep apnea;
(p) painful peripheral neuropathy;
(q) Parkinson's disease;
(r) posttraumatic stress disorder;
(s) severe chronic pain;
(t) severe anorexia or cachexia;
(u) spasmodic torticollis;
(v) ulcerative colitis; or
(w) any other medical condition, medical treatment or disease as approved by the department of health;
(10) "generally accepted standards" means standards of care and clinical practice, including clinical practice guidelines and recommendations, that are generally recognized by health care providers practicing in relevant clinical specialties;
(11) "medical cannabis" means cannabis products used by a qualified patient or in accordance with the Lynn and Erin Compassionate Use Act; and
(12) "qualified patient" means a resident of New Mexico who holds a registry identification card pursuant to the Lynn and Erin Compassionate Use Act.
B. A group or blanket health insurance policy or contract that is delivered, issued for delivery or renewed in this state shall provide coverage for:
(1) medical cannabis that is consistent with the coverage provided for medication that would otherwise be prescribed in accordance with generally accepted standards to treat the eligible insured's debilitating medical condition, including cost-sharing requirements; and
(2) an adequate supply, as established by department of health rule; provided that the eligible insured:
(a) is a qualified patient; and
(b) obtains cannabis from a cannabis retailer approved by the insurer.
C. An insurer shall provide:
(1) reimbursement to an eligible insured after the submission of a claim in accordance with the process established by the insurer's plan and in compliance with department of health rule; or
(2) direct payment to a cannabis retailer authorized by the insurer after submission of the claim in accordance with the process established by the insurer's plan and in compliance with department of health rule."
SECTION 5. A new section of the Health Maintenance Organization Law is enacted to read:
"[NEW MATERIAL] MEDICAL CANNABIS COVERAGE.--
A. As used in this section:
(1) "adequate supply" means an amount of cannabis, in any form approved by the department of health, possessed by a qualified patient that is determined by department of health rule to be no more than reasonably necessary to ensure the uninterrupted availability of cannabis for a period of three months and that is derived solely from an intrastate source;
(2) "cannabis":
(a) means all parts of the plant Cannabis containing a delta-9-tetrahydrocannabinol concentration of more than three-tenths percent on a dry weight basis, whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture or preparation of the plant, its seeds or its resin; and
(b) does not include the mature stalks of the plant; fiber produced from the stalks; oil or cake made from the seeds of the plant; any other compound, manufacture, salt, derivative, mixture or preparation of the mature stalks, fiber, oil or cake; the sterilized seed of the plant that is incapable of germination; the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink or another product; or hemp;
(3) "cannabis extract":
(a) means a product obtained by separating resins from cannabis by solvent extraction using solvents other than vegetable glycerin, such as butane, hexane, isopropyl alcohol, ethanol or carbon dioxide; and
(b) does not include the weight of any other ingredient combined with cannabis extract to prepare topical or oral administrations, food, drink or another product;
(4) "cannabis product":
(a) means a product that contains cannabis, including edible or topical products that may also contain other ingredients; and
(b) does not include the weight of any other ingredient combined with cannabis or cannabis extract to prepare topical or oral administrations, food, drink or another product;
(5) "cannabis retailer" means a person that sells cannabis products to consumers, pursuant to a license issued by the cannabis control division of the regulation and licensing department pursuant to the Cannabis Regulation Act;
(6) "coinsurance" means a cost-sharing method that requires an enrollee to pay a stated percentage of medical expenses after any deductible amount is paid; provided that coinsurance rates may differ for different types of services under the same individual or group health maintenance organization contract;
(7) "copayment" means a cost-sharing method that requires an enrollee to pay a fixed dollar amount when health care services are received, with the carrier paying the balance of the allowable amount; provided that there may be different copayment requirements for different types of services under the same individual or group health maintenance organization contract;
(8) "cost sharing" means a copayment, coinsurance, deductible or any other form of financial obligation of an enrollee other than a premium or a share of a premium, or any combination of any of these financial obligations, as defined by the terms of an individual or group health maintenance organization contract;
(9) "debilitating medical condition" means:
(a) cancer;
(b) glaucoma;
(c) multiple sclerosis;
(d) damage to the nervous tissue of the spinal cord, with objective neurological indication of intractable spasticity;
(e) seizure disorder, including epilepsy;
(f) positive status for human immunodeficiency virus or acquired immunodeficiency syndrome;
(g) admittance into hospice care in accordance with rules promulgated by the department of health;
(h) amyotrophic lateral sclerosis;
(i) Crohn's disease;
(j) hepatitis C infection;
(k) Huntington's disease;
(l) inclusion body myositis;
(m) inflammatory autoimmune-mediated arthritis;
(n) intractable nausea or vomiting;
(o) obstructive sleep apnea;
(p) painful peripheral neuropathy;
(q) Parkinson's disease;
(r) posttraumatic stress disorder;
(s) severe chronic pain;
(t) severe anorexia or cachexia;
(u) spasmodic torticollis;
(v) ulcerative colitis; or
(w) any other medical condition, medical treatment or disease as approved by the department of health;
(10) "generally accepted standards" means standards of care and clinical practice, including clinical practice guidelines and recommendations from professional associations, that are generally recognized by health care providers practicing in relevant clinical specialties;
(11) "medical cannabis" means cannabis products used by a qualified patient or in accordance with the Lynn and Erin Compassionate Use Act; and
(12) "qualified patient" means a resident of New Mexico who holds a registry identification card pursuant to the Lynn and Erin Compassionate Use Act.
B. An individual or group health maintenance organization contract that is delivered, issued for delivery or renewed in this state shall provide coverage for:
(1) medical cannabis that is consistent with the coverage provided for medication that would otherwise be prescribed in accordance with generally accepted standards to treat the eligible enrollee's debilitating medical condition, including cost-sharing requirements; and
(2) an adequate supply, as established by department of health rule; provided that the eligible enrollee:
(a) is a qualified patient; and
(b) obtains cannabis from a cannabis retailer approved by the insurer.
C. An insurer shall provide:
(1) reimbursement to an eligible enrollee after the submission of a claim in accordance with the process established by the carrier and in compliance with department of health rule; or
(2) direct payment to a cannabis retailer authorized by the carrier after submission of the claim in accordance with the process established by the carrier and in compliance with department of health rule."
SECTION 6. A new section of the Nonprofit Health Care Plan Law is enacted to read:
"[NEW MATERIAL] COVERAGE FOR MEDICAL CANNABIS.--
A. As used in this section:
(1) "adequate supply" means an amount of cannabis, in any form approved by the department of health, possessed by a qualified patient that is determined by department of health rule to be no more than reasonably necessary to ensure the uninterrupted availability of cannabis for a period of three months and that is derived solely from an intrastate source;
(2) "cannabis":
(a) means all parts of the plant Cannabis containing a delta-9-tetrahydrocannabinol concentration of more than three-tenths percent on a dry weight basis, whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture or preparation of the plant, its seeds or its resin; and
(b) does not include the mature stalks of the plant; fiber produced from the stalks; oil or cake made from the seeds of the plant; any other compound, manufacture, salt, derivative, mixture or preparation of the mature stalks, fiber, oil or cake; the sterilized seed of the plant that is incapable of germination; the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink or another product; or hemp;
(3) "cannabis extract":
(a) means a product obtained by separating resins from cannabis by solvent extraction using solvents other than vegetable glycerin, such as butane, hexane, isopropyl alcohol, ethanol or carbon dioxide; and
(b) does not include the weight of any other ingredient combined with cannabis extract to prepare topical or oral administrations, food, drink or another product;
(4) "cannabis product":
(a) means a product that contains cannabis, including edible or topical products that may also contain other ingredients; and
(b) does not include the weight of any other ingredient combined with cannabis or cannabis extract to prepare topical or oral administrations, food, drink or another product;
(5) "cannabis retailer" means a person that sells cannabis products to consumers, pursuant to a license issued by the cannabis control division of the regulation and licensing department pursuant to the Cannabis Regulation Act;
(6) "coinsurance" means a cost-sharing method that requires an enrollee to pay a stated percentage of medical expenses after any deductible amount is paid; provided that coinsurance rates may differ for different types of services under the same individual or group health maintenance organization contract;
(7) "copayment" means a cost-sharing method that requires an enrollee to pay a fixed dollar amount when health care services are received, with the carrier paying the balance of the allowable amount; provided that there may be different copayment requirements for different types of services under the same individual or group health maintenance organization contract;
(8) "cost sharing" means a copayment, coinsurance, deductible or any other form of financial obligation of an enrollee other than a premium or a share of a premium, or any combination of any of these financial obligations, as defined by the terms of an individual or group health maintenance organization contract;
(9) "debilitating medical condition" means:
(a) cancer;
(b) glaucoma;
(c) multiple sclerosis;
(d) damage to the nervous tissue of the spinal cord, with objective neurological indication of intractable spasticity;
(e) seizure disorder, including epilepsy;
(f) positive status for human immunodeficiency virus or acquired immunodeficiency syndrome;
(g) admittance into hospice care in accordance with rules promulgated by the department of health;
(h) amyotrophic lateral sclerosis;
(i) Crohn's disease;
(j) hepatitis C infection;
(k) Huntington's disease;
(l) inclusion body myositis;
(m) inflammatory autoimmune-mediated arthritis;
(n) intractable nausea or vomiting;
(o) obstructive sleep apnea;
(p) painful peripheral neuropathy;
(q) Parkinson's disease;
(r) posttraumatic stress disorder;
(s) severe chronic pain;
(t) severe anorexia or cachexia;
(u) spasmodic torticollis;
(v) ulcerative colitis; or
(w) any other medical condition, medical treatment or disease as approved by the department of health;
(10) "generally accepted standards" means standards of care and clinical practice, including clinical practice guidelines and recommendations from professional associations, that are generally recognized by health care providers practicing in relevant clinical specialties;
(11) "medical cannabis" means cannabis products used by a qualified patient or in accordance with the Lynn and Erin Compassionate Use Act; and
(12) "qualified patient" means a resident of New Mexico who holds a registry identification card pursuant to the Lynn and Erin Compassionate Use Act.
B. An individual or group health care plan that is delivered, issued for delivery or renewed in this state shall provide coverage for:
(1) medical cannabis that is consistent with the coverage provided for medication that would otherwise be prescribed in accordance with generally recognized standards to treat the eligible subscriber's debilitating medical condition, including cost-sharing requirements; and
(2) an adequate supply, as established by department of health rule; provided that the eligible subscriber:
(a) is a qualified patient; and
(b) obtains cannabis from a cannabis retailer approved by the insurer.
C. An insurer shall provide:
(1) reimbursement to an eligible subscriber after the submission of a claim in accordance with the process established by the health care plan and in compliance with department of health rule; or
(2) direct payment to a cannabis retailer authorized by the health care plan after submission of the claim in accordance with the process established by the health care plan and in compliance with department of health rule."
SECTION 7. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2026.
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