Has marijuana legalization affected traditional drug prescriptions?

Approval of recreational and medical cannabis laws in most U.S. states has allowed individuals to legally obtain cannabis to treat certain medical ailments that had typically been treated with prescription drugs. New research in Health Economics reveals the impact that cannabis laws have had on such traditional prescriptions.

After analyzing prescription drug claims reported by small and large group insurers from 2010–2019 for working-age individuals, investigators found significant reductions in prescription drug claims per enrollee of $34–42 annually in the small group insurance market following recreational cannabis legalization. Net prescription drug claims in these markets were reduced by approximately 6% following recreational cannabis legalization.

The researchers did not observe similar reductions in claims in large group insurance markets. They also did not find strong evidence of an effect of medical cannabis legalization on prescription drug claims in either market.

“We built off prior studies to examine whether declines in prescription drugs among publicly insured populations following cannabis legalization extend to employed individuals,” said corresponding author Rhet A. Smith, PhD, of the University of Texas at El Paso. “We posit the reduction in prescription drug claims in small group insurance markets and not in large group markets suggests important compositional differences across the two markets that may influence cannabis and prescription drug usage across these populations.”

URL upon publication: https://onlinelibrary.wiley.com/doi/10.1002/hec.4967

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About the Journal
Health Economics is an international health policy journal publishing articles on all aspects of global health economics. We welcome theoretical contributions, empirical studies, and analyses of health policy from the economic perspective. With a wide scope, Health Economics welcomes contributions on the valuation, determinants and definition of health, health care supply and demand, planning and market mechanisms, treatment micro-economics, and health care system performance.

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