Medicaid for people released from prison or jail in NM to be introduced in summer 2025 • Source: New Mexico

Almost everyone in prison or jail returns home at some point. But New Mexico and other states have for decades barred these people from health insurance by default while they're incarcerated. Experts say this can lead to even greater harm in communities after they're released.

But the federal government last month gave New Mexico more flexibility in its Medicaid program, allowing the state to enroll people in Medicaid upon release from state prisons, local and tribal jails, juvenile detention centers and state forensic hospitals like the one in Las Vegas, NM.

Although many people who enter the criminal justice system are eligible for Medicaid, almost all incarcerated people who participate in this program are Lose coverage if they are taken into custody pursuant to a federal law that establishes the Medicaid Inmate Exclusion Policy, or “inmate exclusion.”

When someone is imprisoned, they not only risk losing their job, their home or contact with their relatives, they also lose access to medical care outside prison walls.

Since this exclusion rule came into force, prison staff have been telling inmates that they must see a doctor after their release to continue receiving their medication, including for chronic illnesses. “But in reality, it's difficult for them to go out, get an appointment and then show up,” says Wence Asonganyi, head of the prison health service.

On July 26, the Centers for Medicare & Medicaid Services approved New Mexico's request for an exception to the exclusion policy.

This could reduce the likelihood that those affected will commit another crime after their release (so-called recidivism), says Haven Scogin, deputy director of the New Mexico Corrections Department's reintegration division.

Studies have shown Interventions such as medication-assisted treatment for substance use disorders during incarceration and after release are important to prevent recidivism.

“This is a way to structurally remove barriers to health insurance,” Scogin said.

The exemption also allows people to obtain a 30-day supply of their medications upon discharge.

Asonganyi expressed hope that the exemption would allow medical staff to meet inmates either virtually or in person while they are still in prison so they know where to go and who to meet.

The exemption requires state governments not only to send people to appointments, but also to stand by them in the waiting room, support them during the process and try to sign them up for other services, said Alex Castillo Smith, deputy secretary of the health department.

The exemption will allow more inmates in state prisons to receive medication-assisted treatment once the prison department has finalized policies, which is expected to happen in September, Asonganyi said.

Ten other states recently received the green light to make similar changes to their Medicaid programs, and another 13 states are still awaiting approval, said Jon Courtney, deputy director of the Legislative Finance Authority.