N.M. Stat. § 27-11-15
Disposition of recovered medicaid funds.
A. Overpayments collected pursuant to the Medicaid Provider and Managed Care
Act on behalf of the state shall be remitted to the department for deposit in the general
fund to be used for the state's medicaid program.
B. The department shall not enter into a contract to pay any portion of funds
recovered by the state from a medicaid provider, a managed care organization or a
subcontractor to any other person unless expressly authorized or required to do so by
state or federal law.