Health insurance coverage for medical marijuana remains largely out of reach across the U.S., but a new initiative could soon offer some financial relief to patients who rely on marijuana-based treatments.
The American Council of Cannabis Medicine (ACCM) has introduced a reimbursement program known as Elevated States, which aims to cover part of the expenses tied to medical cannabis use. Under the program, qualifying patients could get up to $175 each month to offset costs related to cannabis purchases and doctor consultations.
Several major insurers, including Envita Health, Cigna, and Detego Health, are reportedly participating in certain plans across the 38 states where medical cannabis is legal. ACCM consultant Doug Benns expects about 15 insurance companies to be involved by the time open enrollment begins on November 1. Coverage details vary, with some plans reimbursing medical consultations, while others extend benefits to dispensary purchases, or both.
Despite growing public acceptance of medical cannabis and several state-level rulings requiring reimbursement under workers’ compensation, federal prohibition continues to deter large-scale insurer involvement. The lack of federal guidance leaves most patients paying out of pocket for cannabis-based treatments.
According to Steph Sherer, president of Americans for Safe Access, the new efforts should not be mistaken for full insurance coverage. “There’s a lot of discussion about frameworks and benefits, but right now no insurance company is truly covering marijuana,” she said. Most of the current offerings, Sherer added, resemble employee discounts rather than actual medical benefits. Patients may receive price reductions at dispensaries or with cannabis specialists, but that’s far from the comprehensive coverage advocates are seeking.
Some states have experimented with workers’ compensation reimbursements for medical marijuana, though experts say these remain isolated examples rather than signs of a national shift. Still, even partial reimbursement could provide a much-needed boost for the industry, which often sees patient numbers decline once recreational markets open.
One early participant in the EM2P2 and ACCM network is Kolas, a Sacramento-based cannabis company that operates six dispensaries serving both medical and recreational customers. Kevin McCarty, the company’s compliance director, said medical users currently make up about 5% of their clientele, but he expects that number to grow once patients can seek reimbursement.
Federal prohibition remains the biggest barrier to true insurance integration. Without consistent federal guidelines or standardized medical protocols, insurers are hesitant to underwrite cannabis treatments. Advocates argue that reclassifying marijuana under federal law could be a turning point.
Cannabis companies from far and near, such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), hope wider reforms are made so that patients who need medical marijuana aren’t left to incur the full cost of their treatment out of pocket despite having medical insurance.
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