A recent study conducted by Leafwell, published in the journal Applied Health Economics and Health Policy, suggests that the federal legalization of medical cannabis could lead to significant reductions in healthcare expenditures across the United States, potentially saving up to $29 billion per year.
The study highlights that states with legal medical cannabis programs saw noticeable cost savings for employers and employees alike, with employers benefiting from lower health insurance premiums. In states where medical cannabis is legal, employers experienced a 3.4% reduction in premium costs for individual coverage plans compared to employers in states without medical cannabis access. The report estimates that employers in these states saved approximately $238 per individual insurance premium annually, and $348 per year on employee-plus-one insurance plans.
For businesses, the financial implications are substantial. According to the Leafwell report, a company with 50 employees in a state with medical cannabis laws could expect to save around $14,650 per year on health insurance premiums. The study projects that if all 50 states were to adopt comprehensive medical cannabis reforms, employers would collectively save $14.9 billion on single coverage plans and an additional $8 billion on employee-plus-one plans.
Employees would also benefit from the shift. Workers in states with legal medical cannabis access would save $4.2 billion annually for single coverage plans and $2.3 billion for employee-plus-one coverage.
In total, the widespread legalization of medical cannabis could result in a 0.65% reduction in overall U.S. healthcare expenditures, which amounted to $4.5 trillion in 2022. This would translate to an estimated $29 billion in savings each year.
Leafwell’s findings underscore the growing economic case for federal cannabis reform, as the healthcare system looks for innovative ways to reduce costs while improving patient care.
For more updates on cannabis industry news and business insights, subscribe to our daily newsletter.
