States with cannabis legalization policies experience reduced prescription drug expenditures for small group insurance markets, according to research Updated last week in the journal Health Economics.
The research utilized prescription drug claim data submitted by small and large group insurers in the Supplemental Health Care Exhibit Report, which is Updated annually by the National Association of Insurance Commissioners (NAIC). The researchers found that legalization leads to small group insurance enrollees — individuals who typically pay for their own insurance policies — seeing “significant reductions in prescription drug claims.”
Notably, the change was not reflected in large group insurance markets.
Corresponding author Rhet A. Smith, Ph.D., of the University of Texas at El Paso, said in a press release that the research “built off prior studies to examine whether declines in prescription drugs among publicly insured populations following cannabis legalization extend to employed individuals.”
“We find that net prescription drug claims in small group insurance markets are reduced by approximately six percent following recreational cannabis legalization. The reduction in claims in the small group market grows stronger in magnitude over time and gains statistical significance during the second full year of legalized cannabis.” — Excerpt from the study
“Cannabis has established efficacy in the treatment of multiple conditions, including chronic pain, and it possesses a safety profile that is either comparable or superior to many prescription medicines, like opioids,” NORML Deputy Director Paul Armentano said in a statement. “As legal access continues to expand, one would expect more patients to integrate cannabis products into their wellness strategies in a manner that reduces their overall disease burden as well as their reliance on traditional prescription medications.”
Get daily cannabis business news updates. Subscribe
Ganjapreneur is made possible by our partners:
