This bill introduces new sections within the Health Care Purchasing Act, the Public Assistance Act, and the New Mexico Insurance Code to require coverage for medical cannabis for qualified patients with debilitating conditions. It defines "adequate supply" as the amount of cannabis deemed necessary for a three-month period by the Department of Health and specifies the types of cannabis products eligible for coverage. The legislation mandates that group health coverage and medical assistance include reimbursement for medical cannabis, aligning it with coverage for other medications, and allows for direct payments to cannabis retailers or reimbursements to patients.

Additionally, the bill establishes definitions for key terms related to medical cannabis, such as "cannabis retailer," "debilitating medical condition," and "qualified patient," ensuring that coverage is limited to those registered under the Lynn and Erin Compassionate Use Act. It requires health maintenance organization contracts to provide coverage for medical cannabis consistent with other prescribed medications, including cost-sharing requirements. Insurers must reimburse eligible patients or make direct payments to cannabis retailers, adhering to health department rules, with an effective date set for January 1, 2026. Overall, the legislation aims to improve access to medical cannabis for eligible patients while ensuring insurance coverage aligns with accepted medical practices.