Could National Legalization of Medical Marijuana Save Half a Billion Dollars in Medicare Costs?

Medical Marijuana

Researchers at the University of Georgia studied data from Medicare Part D from 2010 to 2013 to determine whether legalization of marijuana changes doctors’ clinical practice and whether it could curb public health costs.

The study found that states which legalized medical marijuana — which is sometimes recommended for symptoms like chronic pain, anxiety or depression — saw declines in the number of Medicare prescriptions for drugs used to treat those conditions and a drop in spending by Medicare Part D, which covers the cost on prescription medications.

The study determined that medical marijuana saved Medicare about $165 million in 2013.  The study estimated that if medical marijuana were legalized nationwide, Medicare Part D spending would have declined in the same year by about $470 million.

Read more at this University of Georgia article – Research finds medical marijuana lowers prescription drug use.

Federal Marijuana Protections Extended

US Congress Rohrabacher Farr Amendment

The US Congress has re-authorized the Rohrabacher-Farr Amendment which prohibits the Justice Department from interfering in state-authorized medical marijuana programs.  The provision was included in short-term spending legislation, House Resolution 2028, and will expire on April 28, 2017.

The Rohrabacher-Farr Amendment was initially enacted by Congress in 2014, and provides that federal funds cannot be used to prevent states from “implementing their own state laws that authorize the use, distribution, possession or cultivation of medical marijuana.”  (H.Amdt.748)

In August, 2016, the Ninth Circuit Court of Appeals in United States v. McIntosh, 833 F.3d 1163, 1177 (9th Cir. 2016), unanimously ruled that the Rohrabacher-Farr Amendment bars the federal government from taking legal action against any individual involved in medical marijuana related activity absent evidence that the defendant is in clear violation of state law.

Because the provision is included as part of a Congressional spending package and does not explicitly amend the US Controlled Substances Act, members must re-authorize the amendment annually.