This bill introduces new sections within the Health Care Purchasing Act, the Public Assistance Act, and the New Mexico Insurance Code to mandate 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 outlines the types of cannabis products eligible for coverage. The legislation requires that group health coverage and medical assistance include reimbursement for medical cannabis, either directly to the patient or through payments to licensed cannabis retailers, provided the patient holds a registry identification card.

Furthermore, the bill establishes definitions for terms related to medical cannabis, such as "cannabis retailer," "coinsurance," "copayment," and "debilitating medical condition," which includes serious health issues like cancer and posttraumatic stress disorder. It mandates that health maintenance organization contracts provide coverage for medical cannabis in alignment with the treatment of these conditions, ensuring that eligible patients can obtain cannabis from licensed retailers. The reimbursement process for insurers is also outlined, allowing for either patient reimbursement after claim submission or direct payments to retailers, with an effective date for these provisions set for January 1, 2026.