N.M. Stat. § 27-2-16
Compliance with federal law.
A. Subject to the availability of state funds, the authority may provide assistance to
aged, blind or disabled persons in the amounts consistent with federal law to enable the
state to be eligible for medicaid funding. Persons shall be determined to be aged, blind
or disabled according to rules of the authority.
B. If drug product selection is permitted by Section 26-3-3 NMSA 1978,
reimbursement by the medicaid program shall be limited to the wholesale cost of the
lesser expensive therapeutic equivalent drug generally available in New Mexico plus a
reasonable dispensing fee of at least three dollars sixty-five cents ($3.65).