Study: Cannabis Legalization Associated With Reduced Prescription Drug Claims

States with cannabis legalization policies experience reduced prescription
drug expenditures for small group insurance markets, according to research
published 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 published 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.”