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Canada spent $135 million on medical cannabis for veterans last year, US spent $0.00 on cannabis for veterans
The government of Canada places a high value on the welfare of its veterans compared to its southern neighbors. One of the ways this was demonstrated was by introducing a reimbursement policy for veterans’ medical use of cannabis. This policy has been implemented following input from all stakeholders and medical experts concerned. However, since its inception, the amount due to the government for the policy has increased at an exceptional rate. Read on as we explain how Canada spent $135 million on medical cannabis for veterans in the last fiscal year.
The Medical Cannabis Use Veterans Compensation Policy was announced on November 22, 2016. In addition to the guideline, a guideline value of three grams per day has been set as a limit. The department also went further to amend the policy, reimbursing veterans the equivalent of three grams of cannabis in fresh marijuana and marijuana oil. This equivalent has also been priced at a fair market price of $8.50 per gram, charging the veterans and reimbursing the Ministry. This phrase was used whether the product was dried cannabis or its equivalent in cannabis oil or fresh marijuana.
The three gram benchmark for reimbursement was achieved by the department after extensive research and consultation. A panel of medical experts was consulted by the department and they recommended caution when using cannabis for medicinal purposes. The majority of recommendations for a daily limit have been one or two grams per day. The department then reviewed the available scientific evidence and correlated it with input from the veterans, licensed producers and other stakeholders. This helped meet the three-gram guideline, which is also in line with the 2.7 grams per day that Health Canada is licensed for every Canadian.
The expansion of products covered by reimbursement coincides with the provisions of the Marijuana for Medical Purposes Regulations (MMPRs) of 2014. The Health Canada amended regulation eliminated the licensing restrictions for certain medical conditions and the requirement for specialist licensing. The onset of the new regulations saw a rise in cannabis for medical cannabis purposes. This surge resulted in the country spending $135 million on medical cannabis for veterans in 2021 alone.
The journey that has brought Canada to where it is now in terms of medical cannabis reimbursements for veterans began some time ago. It’s important that we trace the timeline so we can see how it all fits together and how Canada got to where it is now. The first step came in 2007 when Veteran Affairs Canada reimbursed a veteran for medical cannabis out of compassion. After this first step, the number of refunds continued to increase at enormous cost.
Veteran Affairs Canada’s previous reimbursements were covered by Sector 4 of the Veterans Health Care Regulations. This section was in compliance with Health Canada’s Marijuana Medical Access Regulations. However, this regulation has a caveat in that only specialist approval is required, and only under certain conditions and circumstances. This limitation severely impacted the number of participants who came on board for the program, as many were put off by the requirements. There was also the possibility that many were sourcing their cannabis products from illegal markets.
Health Canada’s introduction of the Marijuana for Medical Purposes Regulations removed some of the previous restrictions. Some of these restrictions include approval for certain conditions and requiring approval only from specialists. This allowed more veterans to resort to medicinal cannabis and further increased reimbursement costs. Reimbursement jumped from $408,809 in 2014 for 77,012 grams used by 112 customers to $5,160,747 for 494,927 grams used by 628 customers in 2015. As of 2021, the department had served 15,369 customers with $119,264,105 for 14,463,796 grams of cannabis consumed.
The truth is, on its current path, Veteran Affairs could easily pay over $200 million in reimbursements by the end of 2023. This is certainly the view of many, and proponents and pundits alike are trying to provide reasons for the momentum. More and more veterans are turning to cannabis for different medical conditions, with particular variations in dosage and frequency. Some have argued that the increasing use of cannabis by veterans has turned them away from opioids and other problematic narcotics. Reports have also shown a reduction in alcohol consumption among veterans, which may also be linked to the increase in cannabis use.
Some of the reasons that have been blamed for increasing the number of users are the COVID-19 pandemic, increased awareness, reducing stigma and stereotyping of cannabis users, and the veteran medical cannabis industry. These facts have unique dynamic implications for the cannabis-using population in every region of the world. If we combine their effect as in Canada, we see an effect like the rapid increase in user numbers. This means that in the near future the number of users is expected to increase and the amounts paid as refunds will also increase.
It’s good news to see that cannabis is doing a lot of good for cannabis veterans. This can be seen from the annual increase in customer numbers. However, much remains to be done. This is because there is limited clinical evidence to support the effectiveness and safety of cannabis for long-term use. It is therefore important that adequate research is conducted to fully understand and maximize the benefits of medicinal cannabis in the interests of veterans and the general public. Until then, Canada appears to continue footing the medical cannabis bill for its veterans, and more veterans will continue to come on board.
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