NM LEG Prior Authorization Revisions

Published on: Apr 11, 2025

On Apr. 7, NM LEG passed bill on prior authorization for rare diseases.

  • NM LEG passed bill SB 39, amending the Prior authorization act, adding drug classes.
  • Amends NM INS 59A-22B-2 (definitions), NM INS 59A-22B-5 (prior authorization requirements), NM INS 59A-22B-8 (prior authorization for drugs, step therapy).
  • Bill Provisions
  • Prohibits prior authorization, step therapy for medications prescribed for rare diseases.
  • Medical necessity determination must be completed by a health care professional from the same or similar practice specialty that typically manages the disease or condition.
  • Medical necessity to be determined within 7 days, 24 hours for emergency cases.
  • Determinations not completed within specified time limits will be deemed approved.
  • Legislative History
  • On Feb. 7, 2025, bill introduced in Senate; on Mar. 8, 2025, bill passed in Senate.
  • On Mar. 10, 2025, bill introduced in House; on Mar. 18, 2025, bill passed in House.
  • On Apr. 7, 2025, SB 39 was signed by the governor, assigned Chapter 57.
  • Effectiveness
  • Bills without effective dates specified in bill text or emergency clauses become effective 90 days after adjournment of the Legislature, so effective on Jun. 20, 2025.
  • Applies to individual or group policies entered into, offered, issued after Jul. 1, 2025.
Regulators
NM LEG
Entity Types
Ins
Reference
Ch. 57, Bill SB39, 4/7/2025; Citation: *NM INS* 59A-22B-2, 59A-22B-5, 59A-22B-8;
Functions
Claims/Accelerated Benefits; Compliance; Legal; Market Conduct; Operations; Product Administration
Countries
United States of America
Category
State
N/A
Products
Insurance; Insurance-Health
Rule Type
Final
Regions
Am
Rule Date
Apr 7, 2025
Effective Date
Jun 20, 2025
Rule ID
250281
Linked to
N/A
Reg. Last Update
Apr 7, 2025
Report Section
US Insurance