Pennsylvania Lawmakers Consider Medical Cannabis Reimbursement
PENNSYLVANIA LAWMAKERS are considering legislation that would make the state one of the few in the nation to require employers to reimburse injured workers for medical cannabis used to treat workplace injuries — even as California moves in the opposite direction.
If the bill becomes law, Pennsylvania would be the seventh state to approve workers’ comp reimbursement for cannabis.
Meanwhile, California’s Division of Workers’ Compensation (DWC) earlier this year pursued new rules that would bar reimbursement, but it’s unclear if it will move forward after a public hearing and receiving a flood of comments opposing the move.
Here’s a look at the action in both states:
Pennsylvania
The bill, sponsored by Rep. David Delloso, a Democrat representing Delaware County, would mandate that employers cover up to $250 per month, or $3,000 annually, in medical marijuana expenses for qualifying workers’ compensation claimants. It would also cover the state’s $50 medical cannabis patient ID card fee and allow reimbursement for physician certification costs, which range from $100 to $350.
If the bill becomes law, Pennsylvania would be the seventh state to approve workers’ comp reimbursement for cannabis.
States That Allow Reimbursement
- Connecticut
- Minnesota
- New Hampshire
- New Jersey
- New Mexico
- New York
Workers requesting reimbursement would have to be registered with the Pennsylvania Medical Marijuana Program.
The measure comes as Pennsylvania continues to debate broader adult-use legalization. While legalization bills have stalled in the GOP-controlled State Senate, several lawmakers from both parties are pressing for reform.
For now, Delloso’s measure could create a foothold for medical cannabis in the workers’ compensation arena, particularly for patients seeking opioid alternatives.
California Charts Another Course
Meanwhile, the DWC is considering new treatment guidelines that would explicitly bar reimbursement for cannabis in workers’ comp cases.
The proposed change, based on updated recommendations from the American College of Occupational and Environmental Medicine, would remove cannabis from the state’s Medical Treatment Utilization Schedule for treating chronic, acute or postoperative pain.
California Labor Code permits medical marijuana as a reimbursable treatment under workers’ comp, but only if all the following conditions are met:
- The treatment is recommended by the injured worker’s treating physician, accompanied by a written treatment plan detailing dosage and frequency.
- It must align with the employer’s drug-free workplace policy.
- The cost must be reasonable, and the medical condition must stem from work-related injury or illness.
Despite this, workers’ compensation insurers rarely approve reimbursement requests for medical marijuana for injured workers. As well, state workers’ comp regulations require employers to pay only for FDA-approved medications.
The California Applicants’ Attorneys Association has argued that the ACOEM guidelines conflict with both research findings and the experience of physicians treating patients with chronic pain or cancer.
Two States, Two Directions
For cannabis operators, the developments highlight the patchwork nature of medical marijuana policy in the workers’ compensation space around the country.
Pennsylvania’s bill could open new market opportunities in patient segments traditionally closed off due to reimbursement barriers.
Meanwhile, DWC’s efforts to bar reimbursement have stalled since the agency held an online public hearing on the proposed rules in March. That meeting was marred by individuals who bombarded it with racist, homophobic, antisemitic rants and pornographic imagery. The agency has not indicated if it plans to move forward with the rules change.