Research shows the impact of cannabis laws on traditional recipes
The approval of recreational and medical cannabis laws in most U.S. states has allowed individuals to legally obtain cannabis to treat certain medical conditions that have typically been treated with prescription medications. New research in health economics shows the impact that cannabis laws have had on such traditional recipes. After analyzing prescription drug claims reported by small and large group insurers from 2010 to 2019 for working-age individuals, researchers found a significant reduction in prescription drug claims per enrollee of $34 to $42 per year in the small group insurance market following cannabis legalization in...
Research shows the impact of cannabis laws on traditional recipes
The approval of recreational and medical cannabis laws in most U.S. states has allowed individuals to legally obtain cannabis to treat certain medical conditions that have typically been treated with prescription medications. New research inHealth Economics shows the impact that cannabis laws have had on such traditional recipes.
After analyzing prescription drug claims reported by small and large group insurers from 2010 to 2019 for working-age individuals, researchers found a significant reduction in prescription drug claims per enrollee of $34 to $42 per year in the small group insurance market following small group cannabis legalization. Net prescription drug claims in these markets were reduced by approximately 6% following the legalization of recreational cannabis.
The researchers did not observe similar reductions in claims in large group insurance markets. They also found no strong evidence of an impact of medical cannabis legalization on prescription drug claims in either market.
We built previous studies to examine whether declines in prescription drug use among publicly insured populations following cannabis legalization extend to employees. Our focus on reducing claims in small group insurance rather than large group markets suggests important compositional differences in the two markets that may influence cannabis and prescription drug use in these populations. “
Rhet A. Smith, PhD, corresponding author, University of Texas at El Paso
Sources:
Cook, A.C.,et al. (2025). The Effects of Medical and Recreational Cannabis Laws on Prescription Drug Claims in Commercial Group Insurance Markets. Health Economics. doi.org/10.1002/hec.4967.