New Mexico Committee Approves Bill to Mandate Insurance Coverage for Medical Cannabis

A key committee in the New Mexico House of Representatives has given approval to legislation that would require insurance coverage for medical cannabis.

House Bill 527, sponsored by State Representative Cristina Parajón (D), was given approval today by the House Health and Human Services Committee. The proposal would require health insurance providers to cover medical marijuana as they do other prescription medications.

If enacted, the measure would amend the Health Care Purchasing Act, the Public Assistance Act, and the New Mexico Insurance Code to mandate insurance coverage for an “adequate supply” of medical marijuana for individuals with qualifying conditions. The bill defines an adequate supply as a three-month allotment of marijuana obtained from an in-state retailer. It also establishes a direct payment or reimbursement system for cannabis retailers and qualifying patients.

HB 527 outlines an extensive list of debilitating medical conditions that would qualify for coverage, including cancer, multiple sclerosis, epilepsy, Parkinson’s disease, and post-traumatic stress disorder. The measure also provides flexibility for the state Department of Health to approve additional conditions.

If passed into law, the proposal would take effect on January 1 2026.

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