The Right Prescription: High Cost Savings and Other Benefits from Medicare and Medicaid Coverage of Medical Marijuana

Abstract

As medical marijuana usage continues to grow, coverage options under federal and private health insurance schemes have wilted away. Despite the expanding list of qualifying conditions for medical marijuana, patients seeking coverage under Medicare, Medicaid, or other governmental health insurance programs are consistently denied funding under these plans. Instead, patients are forced to either rely on “traditional pharmaceuticals” or incur the out-of-pocket expenses for medical marijuana. However, by expanding health insurance coverage to include medical marijuana, medical treatment options would expand, and the government would experience significant cost savings. This Paper examines the benefits to expanding Medicare and Medicaid coverage to encompass medical marijuana and suggests possible solutions for implementation.

Keywords: health insurance, medical marijuana, Medicaid, Medicare, Pay for Success Program, Prescription Drugs, Social Impact Bonds