NM LEG Step Therapy Guidelines


On Feb. 13, NM LEG reported bill on step therapy guidelines.


  • NM LEG issued bill SB 135 to modify guidelines relating to step therapy (ST) for prescription drug coverage and eliminate requirements for certain conditions.
  • Would amend Health Care Purchasing Act, Public Assistance Act, other statutes.
  • To regulate process used by insurers to require patients/prescribers to use preferred or less expensive medications before graduating to expensive/non-preferred medications.
  • Applies same requirements to all forms of health insurance available in New Mexico.
  • Bill Provisions
  • Bill amends NM LEG 13-7-18 to require step therapy protocols established with clinical review criteria; plan must have clear process to request exception to ST.
  • Plan must grant exception if prescribing provider demonstrates drug is contraindicated.
  • Must grant exception if provider demonstrates drug will cause adverse reaction; if drug is expected to be ineffective; if patient tried, failed drug or a drug in the same class.
  • Must provide exception in case when drug is not in the best interest of the patient.
  • Once an exception is granted, requires the plan authorize coverage for life of enrollee.
  • Under current rule, there is a 130-day time period for exceptions; if drug is not filled within 130 days of exception being granted it is considered discontinuation of therapy.
  • Plan must respond to exception request in 72 hours (24 hours in emergency); required to grant exception if no timely response; must authorize coverage pending decision.
  • Prohibited prior authorization or ST for drugs that treat autoimmune disorders, behavioral health, cancer; currently prohibited for substance use disorder treatment.
  • Red line tracked changes begin on page 5 of the bill updated as of Feb. 7, 2024.
  • Legislative History
  • On Jan. 22, 2024, bill was introduced in Senate; on Feb. 8, 2024, bill passed Senate.
  • On Feb. 8, 2024, bill was introduced in House; on Feb. 13, 2024, bill passed House.
  • Effectiveness
  • NM LEG Bill SB 135 becomes effective for policies, plans beginning Jan. 1, 2025.
  • Mar. 2024 NM LEG Bill Approval
  • On Mar. 1, 2024, NM LEG reported governor signed bill into law, assigned Chapter 42.

Regulators NM LEG
Entity Types Ins
Reference Ch. 42, 3/4/2024; Bill SB135, 3/1/2024; Bill SB135, 2/13/2024; Citation: NM LEG 13-7-18;
Functions Claims/Accelerated Benefits; Compliance; Legal; Product Administration
Countries United States of America
Category
State
Products Insurance; Insurance-Health
Regions Am
Rule Type Final
Rule Date 2/13/2024
Effective Date 1/1/2025
Rule Id 201032
Linked to N/A
Reg. Last Update 3/1/2024
Report Section US Insurance

Last substantive update on 03/07/2024