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A federal court in New Mexico has ruled that health insurance companies are not required to cover medical cannabis purchases for their customers. Judge Martha Vazquéz of the U.S. District Court for the District of New Mexico ruled in a decision released on April 23 that Blue Cross and Blue Shield of New Mexico are not required to pay for medical cannabis used as a treatment for behavioral health conditions.
The plaintiffs in the case, New Mexico Top Organics v. Blue Cross and Blue Shield of New Mexico, sought a ruling that medical cannabis “should be fully covered by health insurance, both for individuals with Medicaid insurance and for individuals who have private insurance,” according to Vazquéz’s decision. They argued that the “aggregated effect of New Mexico statutes,” such as the state’s medical cannabis law and a state tax law prohibiting insurers from imposing cost-sharing on behavioral health services, created an obligation to cover medical cannabis for patients who use it.
Vazquéz wrote in her decision that state law does not require insurers to pay for medical cannabis. And if it did, she added, “such a requirement would be preempted by federal law,” according to a report from Marijuana Moment.
The judge noted that her decision is not a ruling on the potential medical benefits of cannabis.
“Even accepting as true for the sake of argument that cannabis does have medical value,” the judge wrote in the decision, “state law still does not compel Defendants to provide coverage for it.”
Arguments Fail To Sway Judge
The plaintiffs hoped that existing state law would be interpreted to cover medical cannabis as a behavioral health treatment. New Mexico state law, Vazquéz noted, includes “some behavioral health treatments that are explicitly covered and some that are explicitly not covered.”
“Tellingly, cannabis does not seem to be included in either category,” her ruling continues. “The fact that medical cannabis is not explicitly covered in the state’s Benchmark Plan signifies that state law does not mandate coverage of it.”
Vasquéz wrote that despite the public assertions of the sponsors of a New Mexico insurance bill that it would cover medical cannabis, “the language of the statute does not do so. And this Court is bound by the plain meaning of the statute, not an article discussing the statute.”
Even if state law required health insurance companies to cover cannabis, the judge continued, “Defendants would not be able to comply with both federal and state law. Under federal law, the possession of cannabis is a criminal offense.”
Vasquéz noted that judges in New Mexico state courts have ruled that the state should cover medical cannabis purchases under workers’ compensation laws. But she added that no federal judges have made similar rulings.
“Like other federal courts,” the decision reads, “this Court is not bound by the decisions of the New Mexico Court of Appeals.”
As for other federal trial court rulings that involve insurance coverage of cannabis, Vasquéz characterized them as “persuasive rather than controlling cases.”
“They illustrate that federal courts are grappling with the conflicting and somewhat uncertain legal landscape of cannabis regulation at the state and federal level,” she wrote.
“This Court finds that New Mexico state law does not compel insurance coverage of medical cannabis,” the decision concludes, “and that, even if it did, such a law or laws would be preempted by federal law, under which cannabis, as a Schedule I drug, is deemed illegal and not medically useful. For these reasons alone, the Court must dismiss the First Amended Complaint and need not consider the remainder of Defendants’ arguments in favor of dismissal.”
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The information in this article and any included images or charts are for educational purposes only. This information is neither a substitute for, nor does it replace, professional legal advice or medical advice, diagnosis, or treatment. If you have any concerns or questions about laws, regulations, or your health, you should always consult with an attorney, physician or other licensed professional.
