Medicaid Coverage of Substance Abuse Treatment

New Mexico ranks as one of the top states in the nation for people who need but do not receive substance abuse treatment. Between 2003 and 2004 a national survey reported that the most common reason for people not receiving treatment was cost or lack of insurance.

DPANM passed two memorials during the 2007 legislative session calling for Medicaid coverage of substance abuse treatment for all adults in New Mexico.

In July 2008, the NM Human Services Department issued the official regulations to include substance abuse treatment as a covered service for Medicaid recipients. We are hopeful that this new policy will bring over $10 million will be brought into New Mexico to increase substance abuse treatment!

Background Information

Substance abuse treatment covered under Medicaid includes detoxification, intensive outpatient services, long-term or short-term residential care, and individual and family counseling and intervention. Over thirty states cover substance abuse treatment under Medicaid. New Mexico Medicaid previously covered substance abuse treatment but after switching to a new plan in 1998 substance abuse treatment was omitted from services to be covered. By covering substance abuse treatment under Medicaid, a large portion of New Mexico’s population will be able to access and receive the substance abuse treatment they need. Coverage of substance abuse treatment services should not increase overall Medicaid costs because of the cost savings in other medical expenses for those who seek and receive treatment.

More Information

• Medicaid Coverage of Substance Abuse Treatment Fact Sheet
• Medicaid Coverage Talking Points
• Medicaid Coverage of Substance Abuse Treatment Memorial Text: Senate Memorial 72 and House Memorial 75 Text

Get Involved

• Sign up to receive Drug Policy Alliance New Mexico's action alerts--it's the only way to stay up-to-date on the bill's progress during the legislative session
• Check out DPA's tips on citizen lobbying: Advocacy 101
• Check out the Drug Policy Alliance Network's (DPAN) other legislative issues in New Mexico