Study finds cannabis legalization reduces prescription claims

A recent study published in the journal Health Economics examines the effects of cannabis legalization on prescription drug claims in the United States. As many states have enacted laws allowing for recreational and medical cannabis use, individuals have begun to opt for cannabis as an alternative treatment for various medical conditions that traditionally required prescription medications.

The study analyzed prescription drug claims from small and large group insurers between 2010 and 2019, focusing on working-age individuals. Researchers discovered that after the legalization of recreational cannabis, prescription drug claims per enrollee in small group insurance markets decreased by $34 to $42 annually. This represents a reduction of approximately 6% in net prescription drug claims following the legalization.

In contrast, the study did not find similar reductions in large group insurance markets. Additionally, the authors did not observe significant effects of medical cannabis legalization on prescription drug claims in either market. Rhet A. Smith, PhD, from the University of Texas at El Paso, noted that their research builds on prior studies to assess whether the observed declines in prescription drug use among publicly insured populations also apply to employed individuals.

Smith suggested that the differences in claims between small and large group insurance markets may indicate varying patterns of cannabis and prescription drug usage among different populations.

Supporting these findings, previous research from Cornell University indicated that the legalization of recreational cannabis correlates with decreased demand for expensive prescription medications used to treat conditions such as pain and mental health issues within state Medicaid programs. The study found a notable decline in the volume of prescriptions for drug classes related to medical indications such as pain management, depression, anxiety, sleep disorders, psychosis, and seizures when states legalized cannabis.

Overall, this study contributes to the growing body of evidence suggesting that cannabis legalization may lead to reduced reliance on prescription medications, particularly within specific insurance markets.