Committee backs private-insurance coverage for topical oxygen therapy for diabetic foot ulcers

The committee voted to advance House Bill 233, which would require private insurers and HMOs to cover topical oxygen therapy for active diabetic foot ulcers, a treatment sponsors and medical advocates said can speed healing and reduce amputations.

The sponsor said New Mexico has a high rate of diabetes-related lower-extremity amputations and that topical oxygen therapy has evidence showing doubled healing rates over 12 weeks and substantially reduced hospitalizations and amputations in some studies. The American Diabetes Association and the state Office of Superintendent of Insurance told the committee they support expanding coverage.

An amendment accepted in committee narrows the bill to apply to private insurance and HMOs only and adds an effective date of Jan. 1, 2026, which the sponsor said is necessary because changing insurance coverage in the middle of a year can be administratively difficult. The sponsor also said the fiscal-impact numbers in the earlier report reflected Medicaid costs and that narrowing to private insurers will materially reduce the fiscal estimate; language to pursue Medicaid coverage may be pursued separately.

The committee adopted the amendment and passed the bill as amended on a recorded vote (10-0). Witnesses said earlier intervention for diabetic foot ulcers can prevent infections and save substantial downstream health-care costs; the sponsor noted studies that suggest prevention saves up to $51 for every dollar spent.

The bill now advances for additional referrals. Supporters urged follow-up work to ensure equitable access under Medicaid in a separate legislative vehicle or during later session work with the Health Care Authority.