According to a new study published in the International Journal of Drug Policy, states that have legalized medical marijuana enjoy significant discounts on their health insurance premiums when compared with states that still consider cannabis illegal.
Researchers analyzed a decade of data on private health insurance from the National Association of Insurance Commissioners and found that premiums fell dramatically in the years after a state implemented a medical marijuana law.
The study found that while the initial reductions in premiums were modest, they had dropped by $1,663 after seven years compared to the states in the control groups. After eight years, the reductions were similar ($1,542) as well as after nine years ($1,626). This indicates that the decrease was relatively stable over time.
The authors conclude that “even though the effect doesn’t begin for seven years after the medical cannabis law is implemented,” there are significant and substantial reductions in health insurance rates in states which legalize medical marijuana.
They add that “both cannabis users and non-users” appreciate the savings due to insurance pooling and “community rating.”
The study’s authors note that the results dispel concerns about legalization increasing healthcare costs. The authors wrote that initial concerns about the legalization of medical cannabis leading to higher medical costs and insurance premiums are unfounded.
Researchers focused on individual health plans, rather than Medicaid or employer-sponsored plans. According to the study, health insurance costs in the U.S. account for 16 to 34 percent of the typical household budget.
Authors excluded from the analysis any states that had already legalized adult use. This was done to control for variables. The control group included states that did not have medical cannabis, or had passed the policy but hadn’t yet implemented it.
The authors acknowledged that it appeared there was a difference between premium reductions depending on when a state passed its medical cannabis laws, but more research is required. They wrote that “for early, mid or late adopting state,” there seems to be a slight increase in premiums in the second year after enactment. Early moving states, however, continue to see premiums decline for years 3-9. Mid-adopting state premiums are attenuated after year 3.
The research paper was written by Amanda C. Cook an economist at Bowling Green State University, E. Tice Sirmans a professor of finance, insurance, and law in Illinois State University, and Eastern Michigan University professor of economics Amanda Stype.
The new research paper is part of a growing body identifying potential benefits to public health associated with ending the prohibition. states that allow medical marijuana to be prescribed have lower opioid rates. A report published earlier this year found that legalizing adult-use marijuana was also associated with a “reduction in opioid demand.”
A separate study conducted in March found that States with medical marijuana laws had lower opioid payments to doctors. This is another indication that patients use cannabis instead of prescription drugs.
A recent study published in the International Journal of Drug Policy showed that cannabis reduced opioid cravings significantly for those who used opioids without prescription. This suggests that expanding legal access to cannabis could give more people a safer alternative.
In a study published by the American Medical Association in January, it was found that approximately 1 out of 3 chronic pain sufferers report using cannabis for treatment. The majority of this group have used cannabis to replace other pain medications including opioids.
The AMA also found that the state-level legalization of medical cannabis led to a significant reduction in opioid prescriptions, and usage by certain cancer patients.
According to a study published in September, giving patients legal access medical cannabis could help them reduce or stop using opioid painkillers while not compromising their life quality.
Another study conducted in the same month found that the pharma industry suffers a severe economic blow after states legalize cannabis, with an average market loss for drugmakers of almost $10 billion per legalization event.
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The first time Marijuana moment published the article States with Legal Medical Marijuana Experience ‘Significant and Sizable Reductions in Health Insurance Premiums’, Study Finds.
