Legal Medical Cannabis Could Save US Healthcare $29B Annually, New Study Finds

A newly released study, sponsored by medical cannabis Telehealth company Leafwell, reveals that adopting medical cannabis laws can lead to significant reductions in employer-sponsored health insurance costs and a general reduction in healthcare spending.

The study analyzed data from 2003 to 2022, revealing a 3.4% reduction in healthcare costs between states with and without medical cannabis laws, leading to a potential $29 billion annual savings in overall expenditures.

Cannabis And Health-insurance

The report highlights compelling evidence that medical cannabis legalization not only benefits patients but also reduces financial strain on employers.

Companies in states that have adopted medical cannabis laws saw their health insurance premiums drop compared to those in states without such policies.

To talk details:

• Individual coverage plans in states with medical cannabis laws saw 3.4% lower premium costs, equating to $238 less per employee, per year.
• Employee-plus-one coverage plans saw a 2.9% reduction in premium costs, with companies saving $348 per employee, per year.
• As a result, the research argues that a company with 50 employees in a state with medical cannabis laws could save approximately $14,650 annually on health insurance premiums compared to a similar-sized company in a non-cannabis state.

Emily Fisher, CEO & founder of Leafwell, emphasized the broader implications:

"Cannabis has been shown to offer significant relief for various conditions, from chronic pain to mental health issues, and ensuring access through insurance can profoundly impact the well-being and productivity of employees."

Read Also: Cannabis Use Linked To Improved COVID-19 Outcomes, New Study Suggests

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Cannabis And General Healthcare Spending

The study also signals the potential nationwide financial benefits of medical cannabis law adoption.

Healthcare spending in the U.S. accounted for 17.3% of GDP in 2022, totaling $4.5 trillion. The report suggests that if all 50 states had medical cannabis laws, it could reduce healthcare spending by 0.65%, saving $29 billion annually. These figures illustrate how integrating medical cannabis into healthcare systems could help control soaring healthcare costs.

Dr. June Chin, chief medical officer of Leafwell, highlighted that there are long-term benefits to legal medical cannabis.

"This report strengthens the case that investing in cannabis care isn't just beneficial to patient care, it's also good for business efficiency," Chin said.

Incorporating cannabis into employer-sponsored health insurance plans could be a win-win for both employees and employers.

The report aligns with previous studies on the matter, and serves as a call to action for employers and lawmakers alike, urging them to consider the broader financial and health benefits of medical cannabis inclusion in healthcare policies.

• Read Next: Cannabis Use Is Up Among Older Adults For Wellbeing, Health Purposes: Poll

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