The Behavioral Health Medicaid Waiver Act establishes a framework for providing support and services to individuals with behavioral health conditions in New Mexico. The Act defines key terms such as "behavioral health condition," "serious mental illness," "serious emotional disturbance," "substance use disorder," and "brain injury." It mandates the health care authority to acquire, provide, or coordinate services through a Medicaid waiver program, which will offer home- and community-based services. The authority is also tasked with developing individual support and service plans through interdisciplinary teams and engaging stakeholders in the rule-making process to ensure comprehensive service delivery.

Beginning in July 2025, the health care authority is required to hold monthly meetings with various stakeholders, including individuals with behavioral health conditions and their families, to develop an application for federal authorization to operate the Medicaid waiver program. The authority may also hire a consulting entity to assist in this process. By July 1, 2026, the health care authority must submit the application to the federal Centers for Medicare and Medicaid Services, aiming to enhance the availability of services for residents with behavioral health conditions in New Mexico.