7.35.4 NMAC · Treatment Equity Fund

Committee material · the September 11 board vote · beside the proposed text of October 20

The board recommendation

On August 18, 2026 the Equity, Access and Cultural Considerations Committee voted 5-0 to send an equity fund framework to the Medical Psilocybin Advisory Board. On September 11 the board voted 7-0 to recommend it to the department, with one change: three preparatory or integrative sessions for each administration after the first, where the committee had two. The department published the proposed rule on October 20. This page sets each voted item beside the proposed text and states the result. It is committee material: the recommendation does not bind the department, and the proposed text is not in effect.

Created October 22, 2026.

The sources

No written recommendation is posted; the terms below are taken from the department's recordings, cited to the moment. The captions are YouTube's automatic captions and carry no speaker labels, so a speaker is named only where the recording names them. The committee's August 18 recording and its July 21 recording are held at source-text/recordings/. The record of each meeting is on Meetings and filings.

What was voted, beside the proposed text

ItemThe recommendationThe proposed text, October 20Result
Income #At or below 200 percent of the federal poverty level. The committee adopted 200 percent as its starting point on July 21 (committee, July 21, 1:14:38) and put it in the August 18 read-out (committee, Aug. 18, 1:03:57). The board's motion said "tapering off to 200%" (board, Sept. 11, 1:01:53).Household income that "does not exceed 200 percent of the applicable federal poverty guidelines". No taper is stated. 7.35.4.8 (A)(3), p. 1In the text
Residency #"must be a New Mexico resident" (committee, Aug. 18, 1:05:19); "must be New Mexico residence" (board, Sept. 11, 0:54:00).Residency is a condition of eligibility, with three forms of proof. 7.35.4.8 (A)(2), p. 1; 7.35.4.9 (B)(3), p. 2In the text
Diagnostic evaluation #"diagnostic evaluation" (committee, Aug. 18, 1:03:57); "the diagnostic evaluation" and "any of the medical evaluations" (board, Sept. 11, 0:44:02).Not named. 7.35.4.14 (A) lists administration sessions and preparatory and integrative sessions only. Covered treatment is "a service, psilocybin product, or travel expense eligible for payment under 7.35.4 NMAC", which does not name one either. 7.35.4.14 (A), pp. 3 to 4; 7.35.2.7 (C)(12) as proposed, amendment p. 2Not in the text
First administration #Six preparatory or integrative sessions, divided as the patient needs. Changed on August 18 from two preparatory and four integrative (committee, Aug. 18, 1:03:57); in the board's motion as "6 sessions of either prep and integration" (board, Sept. 11, 1:01:53)."one initial administration session, with a combined total of six preparatory and integrative sessions included". 7.35.4.14 (A)(1), p. 4In the text
Each later administration #Three sessions. The committee voted two on August 18 (committee, Aug. 18, 1:10:22). At the board, a member addressed as Chris: "I initially said two, but I might bump it up to three" (board, Sept. 11, 0:45:49); "this is Larry. I like 3. I would support three" (board, Sept. 11, 0:49:55). The motion: "to have a vote on the three", passed with "seven in support" and no votes against (board, Sept. 11, 1:01:53, board, Sept. 11, 1:03:08)."a combined total of two preparatory and integrative sessions included" with each of the second and third administration sessions. 7.35.4.14 (A)(2) and (3), p. 4Differs: the committee's two
Number of administrations #"up to three administrations" (committee, Aug. 18, 1:03:57); the board's outline gave "three different administration sessions" (board, Sept. 11, 0:44:57).An initial, a second, and a third administration session. 7.35.4.14 (A), p. 4In the text
Medication #"cost of the medication" (committee, Aug. 18, 1:03:57); "the cost of medication" (board, Sept. 11, 0:52:43). On August 18 the department said a price would be set once producers exist and that "the actual fee schedule doesn't need to go into the regulations" (committee, Aug. 18, 0:46:27).Not in the list of allowable expenses at 7.35.4.14 (A). Reached elsewhere: a uniform fee schedule for "a psilocybin product" based on documented acquisition cost, and the product's identification number, quantity, and acquisition charge on a claim. 7.35.4.11 (C), p. 3; 7.35.4.12 (B)(7), p. 3Elsewhere in the text
Travel #Paid where the patient lives "more than 100 miles" from the appointment or healing center (committee, Aug. 18, 1:03:57, board, Sept. 11, 0:52:43), measured by "travel distance. So, not necessarily straight as the crow flies" (committee, Aug. 18, 1:09:53).Paid where "the shortest reasonable one-way distance" exceeds 100 miles; mileage, transportation, and lodging at state rates; meals and upgrades excluded. 7.35.4.14 (B) to (E), p. 4In the text
Payer of last resort #The fund as "the last payer" after insurance and Medicaid (committee, Aug. 18, 1:03:57). At the board, a speaker called on as Keenan: "specifically saying you have to bill Medicaid first might get you into some legal trouble" (board, Sept. 11, 0:50:21); the department: "our attorneys are already working on that specific language" (board, Sept. 11, 0:51:46). The board voted the intent: "our intention as this board is only to provide the intent, not to provide the actual mechanism" (board, Sept. 11, 1:02:38).Before billing the fund, a documented effort to obtain payment from every payer that may be legally responsible, named as "private insurance, Medicaid, Medicare, and other sources of funding", with proof of denial attached. 7.35.4.10 (A) and (B), p. 2In the text; Medicaid named
Rate cap #"reimbursement not to exceed rates for Medicaid reimbursement" (committee, Aug. 18, 1:04:36, board, Sept. 11, 0:53:21).The lesser of the usual and customary charge, the remainder after another payer, or "the applicable New Mexico Medicaid or Medicare reimbursement rate". 7.35.4.11 (A), p. 2In the text, Medicare added New from the department
Audit #"audit procedures to ensure there is equity and appropriate use" (committee, Aug. 18, 1:04:42, board, Sept. 11, 0:53:29).Prepayment review and post-payment, random, and risk-based audits, with records due in 10 business days. 7.35.4.16, pp. 4 to 5In the text
Hold or suspend #"the ability for the department to hold or suspend payment out of the fund" (committee, Aug. 18, 1:04:58), explained at the board as for when "the fund runs out of money" (board, Sept. 11, 0:53:38).Denial or suspension on eight grounds including unavailable funds; immediate where funding is exhausted. 7.35.4.17 (A)(8) and (C), p. 5In the text

Each row carries its own address: the # beside a row's name links to it, so one item can be cited in a written comment. Quoted fragments are the speaker's or the text's exact words as captioned or extracted.

Raised in the meetings, not voted

ItemWhat was saidThe proposed text, October 20Result
Provider travel to a homebound patient #Described by the department on August 18 (committee, Aug. 18, 0:47:20) and left out of the read-out. On September 11: "That's not a part of this proposal" (board, Sept. 11, 0:54:32).Not in the text. 7.35.4.14 (B) pays the patient's travel. 7.35.4.14 (B), p. 4Not in the text
Hardship application for distance #A speaker called on as Greg: "have a special hardship application where somebody who may be far off a road and not have a car can make an application" (committee, Aug. 18, 1:09:01). Not added to the read-out.Not in the text. The 100-mile threshold has no exception. 7.35.4.14 (B), p. 4Not in the text
Discretion over geographic and condition reach #Senator Steinborn, called on at 0:51:27: language that the department "shall retain the discretion" to ensure "the intent of the fund and its geographic" reach (committee, Aug. 18, 0:54:28). Not added to the read-out.Monitoring of distribution by income, region, rural, frontier, and tribal access, and condition; the results may inform "allocation methods". No power to allocate by region or condition is stated. 7.35.4.19, p. 6Monitoring only
Enrollment in a benefit program as proof #Medicaid recipients qualifying automatically, raised July 21 and set aside without a vote (committee, July 21, 1:54:08). At the board, in answer to public comment, the department said those in such programs would provide "their acceptance letter" (board, Sept. 11, 0:58:45). Not in the motion.A letter showing current enrollment in New Mexico Medicaid, SNAP, TANF, WIC, or SSI establishes income eligibility; the tax return is the alternative. 7.35.4.9 (C), p. 2In the text

New from the department

New from the department marks a provision that is in the proposed text but in neither the committee's August 18 framework nor the board's September 11 vote, and that was not found in the automatic captions of the 23 recorded committee and board meetings from December 5, 2025 to September 14, 2026, searched for its terms on October 22, 2026. A caption search can miss a passage, so the mark means not found, not proven absent. The board left the payer language and the mechanism of holds to the department (board, Sept. 11, 1:02:38). Each provision below also carries the mark where it sits on The proposed rule and on Who the fund would pay, and for what.

12 MOEligibility ends 12 months after funding approval. 7.35.4.8 (D)(5), p. 1 New from the department
PROOFResidency shown by a New Mexico ID, a provider's letter of accommodation, or a tribal ID with a utility bill. 7.35.4.9 (B)(3), p. 2 New from the department
30 DAYSA later payment by another payer is reported within 30 calendar days and returned. 7.35.4.10 (E), p. 2 New from the department
RATEPayment capped at the usual and customary charge as well as the rate, Medicare's rate added beside Medicaid's, and the most analogous rate where neither applies. 7.35.4.11 (A) and (B), p. 2 New from the department
180 DAYSClaims are due within 180 calendar days of service. 7.35.4.12 (D), p. 3 New from the department
7 YEARSClaim records are kept at least seven years. 7.35.4.15 (A), p. 4 New from the department
10 DAYSRequested records are due within 10 business days. 7.35.4.16 (D), p. 5 New from the department
REPAYOverpayments defined, repaid within 30 calendar days, or offset against future payments. 7.35.4.18, p. 5 New from the department
REVIEWAdministrative review on written request within 30 calendar days, of documents only, without a stay. 7.35.4.20 (A) to (G), p. 6 New from the department
NO REVIEWA determination based solely on the lack of funding is not reviewable. 7.35.4.20 (H), p. 7 New from the department

Two provisions listed here on October 22 were discussed in committee and are not marked: that eligibility does not guarantee payment, 7.35.4.8 (C), said by the department on July 21 (committee, July 21, 1:53:01) and August 18 (committee, Aug. 18, 0:52:20); and payment in full without balance billing, 7.35.4.11 (D), raised on April 28 (committee, Apr. 28, 0:44:26) and July 21 (committee, July 21, 0:39:57).

Provenance: the source document and this page’s revisions▸

The document this page is read from

October 20, 2026

The proposed rule, 7.35.4 NMACCurrent state of truth

The proposed rule, published by the department on October 20, 2026: twenty sections setting patient eligibility for the medical psilocybin treatment equity fund, the application, reimbursement and claims, allowable expenses and travel, records, audits, payment denial and suspension, overpayments, program monitoring, and administrative review. It is the first published text of this Part, and it is proposed, not in effect; the rule hearing is November 20, 2026.

This document supersedes 0 earlier ones. Each of them, what it is, what superseded it and when, and a download, is in the register at Meetings and filings.

Revisions to this page

  • October 22, 2026 The list of department additions rebuilt from a search of the captions of 23 recorded committee and board meetings, each item marked New from the department. Two items listed earlier the same day, no guarantee of payment and payment in full, were discussed in committee and are removed from it, with the moments cited.
  • October 22, 2026 Created: the equity fund recommendation as the committee voted it on August 18 and the board on September 11, item by item beside the proposed text, each item cited to the recording and to the subsection.