A new study from the U.S. highlights how the adoption of medical cannabis laws could lead to significant reductions in healthcare costs, offering a glimpse into a healthier, more cost-effective future. Published in the Journal of Applied Health Economics and Health Policy, the research examines healthcare costs in U.S. states that have embraced medical cannabis. It found a remarkable 3.4% decrease in the average total premium per employee for single coverage plans per year in states that offer legal access to medical cannabis.

The study draws an exciting conclusion: if all 50 states allowed legal access to medical cannabis, the collective savings for employers and employees could be staggering. The researchers estimate annual savings of $14.9 billion for single coverage plans alone. This could even reduce healthcare’s contribution to GDP by 0.65%, potentially revolutionizing healthcare affordability across the U.S.

In 2023, approximately four million people were registered to use cannabis for medical purposes across 38 states. However, the paper speculates that many more patients may benefit from cannabis without being captured in official statistics, as not all states require registration.

The long-term benefits of medical cannabis are especially promising. According to the study, noticeable reductions in private health insurance costs can be seen just five years after medical cannabis laws come into effect. One key reason for these savings is that patients often turn to cannabis as a safer alternative to costly medications like opioids, which are covered by insurance plans.

Interestingly, the research also highlights lifestyle benefits associated with cannabis use. Those who use cannabis are more likely to exercise, tend to have lower body mass indexes (BMI), and may consume less alcohol—factors that contribute to a healthier population and reduced healthcare costs.

The study examined five key outcomes, including premium costs for single, family, and employee-plus-one health insurance plans, as well as deductible costs for single and family plans. Along with the 3.4% drop in premiums for single coverage, researchers found a 2.5% decrease in premiums for employee-plus-one coverage plans in states with medical cannabis access.

Overall, this study offers an optimistic vision of the future—where the growing acceptance of medical cannabis can not only improve health outcomes but also deliver real financial savings for individuals, employers, and the nation.