Medicaid Flexibility for Inmates: What New Mexico’s New Policy Means for Released Prisoners

Most people in prison or jail will eventually return home, but for years, New Mexico and other states have typically removed their health coverage while they are incarcerated. Experts argue this can create problems in their communities once they are released.

Last month, the federal government gave New Mexico more flexibility with its Medicaid program. Now, the state can enroll people in Medicaid as they are leaving state prisons, local and tribal jails, juvenile detention centers, and state forensic hospitals like the one in Las Vegas, N.M.

Federal law previously required that most incarcerated people lose their Medicaid coverage due to the Medicaid Inmate Exclusion Policy. This policy not only causes people to lose their jobs, housing, and connections with loved ones, but also cuts off their access to medical care.

Under the current system, prison staff tell inmates to follow up with a doctor after their release to continue their medications, which can be challenging, said Wence Asonganyi, Health Services administrator for the Corrections Department.

On July 26, the Centers for Medicare & Medicaid Services approved New Mexico’s request to waive the exclusion policy. This change is expected to reduce the chances of reoffending by allowing medication-assisted treatment, which is crucial for preventing recidivism, according to Haven Scogin, deputy director of reentry for the New Mexico Corrections Department.

The waiver also allows individuals to receive a 30-day supply of medication upon release. Asonganyi hopes this will enable medical providers to meet with inmates, either virtually or in-person, before their release so they know what to expect.

The waiver requires state governments to help people with appointments and support them throughout the process. It also aims to expand access to medication-assisted treatment for those in state prisons once new rules are written, expected in September.

Ten other states have recently received approval for similar Medicaid changes, with 13 more still awaiting approval, said Jon Courtney, deputy director of the Legislative Finance Authority.

New Mexico’s program is still being developed and will need to recruit providers both inside and outside the prisons. The Corrections Department is working with behavioral health and mental health specialists, Scogin noted.

The waiver allows people to start receiving care one to three months before their release. Providers inside the prison will need to be set up to bill Medicaid for the system to work.

The Health Care Authority and Corrections Department need to submit a detailed plan to the federal government by January 1. They are also working on setting provider rates and updating contracts with insurance companies. Training and education for community members will occur between January and June, with the waiver services expected to launch in July 2025.

The federal government will monitor the program to decide if these services will continue as a permanent part of New Mexico Medicaid, Castillo Smith said.

 

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