What does the legislation passed by the New York State Senate mean?
On June 1st, 2022, Senate Bill S8837 was passed by the New York State (NYS) Senate; the bill would require public state-funded insurance companies to cover the costs of medical cannabis (marijuana) for the insured person.
However, Senate Bill (SB) S8837 has yet to become law since it must also pass in the NYS Assembly (which will not convene until 2023) and be signed by the governor.
It will be a huge win for medical cannabis proponents if it passes. Under this law, it will not just allow the state Medicaid program to pay for medical cannabis, it will be a requirement.
What are the New York State public insurance companies?
Currently, the only public insurance company funded by New York State is Medicaid.
What if I live in New York State and have Medicare?
Medicare is publicly funded by the federal government, not the state government; therefore, it will not be affected by this NYS proposal.
Does Senate Bill S8837 mean private medical insurance will soon pay for medicinal cannabis?
Senate Bill S8837 could pave the way for other insurance companies to follow. But, unfortunately, at the time of this article’s release, no private health insurance companies cover the cost of medical cannabis.
Since the federal government regulates private insurers, will private health insurers ever pay for medicinal cannabis?
The good news is that state publicly funded programs, like Medicaid, are also regulated by the federal government. Thus, federal regulation should not be a barrier, but who knows?
Will medical cannabis ever be covered by Medicare or other federally funded programs?
Maybe someday, federally funded insurance companies will cover cannabis costs. President Biden wrote a proposal on October 6th, 2022, to change the classification of cannabis as a schedule I substance, which means illegal on the federal level and has no currently accepted medical benefits. We refer you to our article on President Biden’s marijuana (cannabis) reform statement for a more detailed explanation.
Since we all know that cannabis does have medicinal benefits, it makes sense to change the classification.
Will this classification change allow or require private insurers to cover medicinal cannabis expenses?
That’s a good question, and only time will tell. It makes logical sense that a reclassification of cannabis could lead to private insurers covering the costs of medical cannabis.
Why would private insurers pay for cannabis, given the cost?
Given the rising costs of prescription medications, cannabis is a less costly alternative.
Besides cost, what other reasons would insurers have to pay for medical cannabis?
Simply put, medical cannabis is much safer than many medications, especially pain medications. If you watch the news, you will notice that we are in an opioid epidemic with frequent overdoses. Since there has not been a proven case of cannabis overdose, it is a much safer alternative.
