A new study has shown that states that have introduced laws to allow access to medical cannabis see lower health insurance premiums.
The study evaluated whether cannabis legalisation significantly impacts aggregate health insurer premiums in the individual market.
Using state-level private health insurer financial data from 2010 to 2021 in the U.S, the researchers found that seven years following the implementation of medical cannabis laws, individual markets saw lower health insurer premiums.
There was a reduction of $1662.7 for states which implemented medical cannabis laws compared to the control group, a reduction of $1541.8 in year eight, and a reduction of $1625.8 in year nine.
The authors write: “The implementation of MCLs lowers individual-market health insurance premiums. Health insurance spending, including premiums, comprises between 16% and 34% of household budgets in the United States.
“As healthcare costs continue to rise, our findings suggest that households that obtain their health insurance on the individual (i.e., not employer sponsored) market in states with MCLs appreciate significantly lower premiums.”