President Trump recently signed Executive Order 14370, removing barriers to research related to the medical benefits of marijuana, requesting its reclassification from a Schedule I to a Schedule III under the Controlled Substance Act (CSA), and enabling its use by patients and doctors to treat certain medical ailments. The order recognizes an expansive legal landscape whereby local and state governments have sanctioned its use for a variety of medical ailments. Furthermore, the order seeks to expand research related to cannabidiol (CBD) and to establish a regulatory framework for the distribution of CBD products. Depending on how the order is implemented, it may lift limitations imposed by health plans and permit its uniform treatment in health care.
While various localities and states have passed regulations permitting the use of marijuana to treat medical ailments, its classification under the CSA has limited its potential coverage under a health plan. Following the issuance of the President Trump’s executive order, the Attorney General is required to expedite the reclassification of marijuana from a Schedule I to a Schedule III controlled substance. Under its current classification as a Schedule I controlled substance, marijuana does not have medical value and is subject to high potential for abuse. Once reclassified as a Schedule III controlled substance, marijuana will have accepted medical use and a lower potential for abuse. Reclassification alone does not authorize physicians to prescribe marijuana; while states may continue to regulate medical licensure and authorize recommendations under state cannabis programs, any lawful prescription of a cannabis-based drug would require approval from the Food and Drug Administration in accordance with the Food, Drug, and Cosmetic Act. If permitted, a medical marijuana prescription and related visits may now be covered by a health plan as medical care.
Pending additional guidance from the Departments of Treasury, Department of Health and Human Services and Department of Labor, the following outlines potential coverage scenarios following the reclassification of marijuana:
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.
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