NM SB205

Requires the Health Care Authority to establish Medicaid reimbursement codes for toxicology services provided by independent reference laboratories at rates equal to the average Medicaid fee-for-service rate schedule for definitive drug testing

Mandates evidence-based clinical protocols for reimbursement, with guidance including weekly testing for patients beginning substance use disorder treatment and monthly testing for those in stable recovery

Defines "independent reference laboratory" as a New Mexico-based facility that is CLIA-certified, College of American Pathologists accredited, enrolled as a Medicaid provider, and not owned by or affiliated with hospitals, physician practices, managed care organizations, or insurers

Requires qualifying laboratories to perform billing and revenue cycle management activities within New Mexico and comply with state gross receipts tax laws

Appropriates $100,000 from the general fund to the Health Care Authority for fiscal year 2027 to administer the program, with an effective date of July 1, 2026