TOXICOLOGY REIMBURSEMENT REQUIREMENTS

HB 278 requires New Mexico's Medicaid program to reimburse independent reference laboratories for toxicology services (such as drug and alcohol testing) at the same rate as standard drug testing services under Medicaid's fee-for-service schedule. It mandates that these services be medically necessary and follow evidence-based protocols, including weekly testing for those starting substance use treatment and monthly testing for stable recovery, unless clinical documentation indicates otherwise. The bill defines "independent reference laboratories" as those not affiliated with hospitals, insurers, or physician groups, and appropriates $100,000 for administration in fiscal year 2027. The law takes effect on July 1, 2026.