Health insurance premiums decrease with medical cannabis

Added on 18 August 2023

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Health insurance premiums decrease with medical cannabis

The U.S. - Compelling new data suggests that medical cannabis legalization brings down health insurance rates, which benefits both consumers and non-consumers alike.

A new study featured online in The International Journal of Drug Policy (which will be included in the September 2023 issue of the journal) shows evidence that states with legal medical cannabis have lowered health insurance premiums.

The study authors included professors from Bowling Green State University in Ohio, Illinois State University, and Eastern Michigan University, who reviewed U.S. private health insurance financial data collected by the National Association of Insurance Commissioners between 2010-2021. The most significant reductions were seen in medical cannabis states seven years later, with annual premiums set at $1,662.70, followed by $1.541.80 in the eighth year, and $1,625.80 in the ninth year. “Although the effect does not begin until seven years post-medical cannabis law implementation, there is a significant and sizable reduction in health insurance premiums,” the authors stated.

Ultimately, researchers noted that these savings are “…appreciated by cannabis users and non-users alike in states that have implemented MCLs [medical cannabis laws].”

The study included examining individual market health insurance plans, but not employer-sponsored insurance. It also only analyzed data from states with just medical cannabis, not medical and adult-use cannabis.