ABOUT THE DEPARTMENT

Reimbursing for Traditional Health Care Practices

New Mexico is one of the first states to receive federal authority under its 1115 Waiver Demonstration program to reimburse Tribes, Nations, and Pueblos for delivery of traditional health care services to Native Americans. By honoring cultural practices, New Mexico Medicaid is expanding access to care for Native Americans.

The Medical Assistance Division has convened a workgroup to design the benefit, slated to launch in October 2025.

The Tribes, Nations and Pueblos may choose to participate if they wish but are not required to participate. As of 2025, the Navajo Nation has expressed interest in reimbursing providers for traditional health care practices and Medicaid is working with Traditional Healers and facilities to determine how to bill for services.

Traditional health care practice reimbursement will be available to Medicaid members who seek services at Indian Health Service facilities and Tribal 638 facilities. Urban Indian Organizations are not included at this time.

What This Means for Native Health and Well-Being

• Expanded Medicaid coverage: Each participating Tribe, Nation, or Pueblo determines their definition of what traditional practices for physical and behavioral health entail. Services are available for Medicaid reimbursement when delivered through a participating facility.
• Flexibility in setting and practice: These services are not bound by the typical “four walls” requirement—they can take place in clinics, homes, or ceremonial spaces, allowing healing to happen in culturally meaningful environments.
• Tribal-led design: Facilities define the scope and qualifications of traditional healers, aligning services with community values and cultural protocols.
• Improving health equity: Supported by Tribal consultations and public input, the approval responds to longstanding community advocacy to provide culturally responsive, trusted care that improves health outcomes.

Who Is Eligible and How It’s Implemented

• American Indian and Alaska Native individuals enrolled in Medicaid and eligible for IHS services can access these new Medicaid benefits upon referral from a health care practitioner.
• Services are reimbursable for both Fee-for-Service and Managed Care Medicaid members who receive care at participating Indian Health Service or Tribal 638 facilities.

Traditional health care services will provide a new revenue source for facilities that already provide these services.

For more information about traditional health care practice reimbursement contact the Medicaid Tribal Liaison.