Is N.J.'s Medical Marijuana Program Still The Nation's Most Expensive?

[Robert Celt]

Almost as soon as the state's long-awaited medical marijuana program got underway in December 2012, the complaints about how expensive it was started rolling in.

An analysis by The Star-Ledger in 2013 found New Jersey's medical cannabis was the most expensive in the nation, taking into account registration fees and sales tax.

In a report Friday, the state Department of Health did its own investigation into the prices for cannabis at the five alternative treatment centers, which are required by law to operate as nonprofit entities.

The department collected information about the cost of cannabis available in New Jersey's program and compared it to five other states "with similar regulatory requirements:" Arizona, New Mexico, Vermont, Maine and Rhode Island.

The price of one ounce of cannabis ranges from $425 to $520 for an average of $489 in the Garden State, not counting the 7 percent state sales tax, according to the report.

Adjusting for the cost of living, which is 10 percent higher, "New Jersey's average price per ounce is not excessive," and "is comparable" to the other states, according to the report.

A look at the data in the report, however, still suggests New Jersey's prices are steep, even allowing for the higher consumer price index. The average cost in Arizona and Maine is $300; $284 in New Mexico; $358 in Vermont; and $311 in Rhode Island.

The cost of the state's medical cannabis is only slightly higher than the $400 to $450 per ounce illegal street price, according to the U.S. Drug Enforcement Administration, the report said.

"New Jersey medicinal marijuana is regulated and tested, patients are afforded protection under the Act, and are able to change (alternate treatment center) affiliation at any time at no cost," according to the report.

Roseanne Scotti, director of the Drug Policy Alliance in New Jersey, an advocacy organization that helped get the law passed, said she was remains concerned the cost of marijuana is too high for patients, many of whom cannot work.

"The high cost of New Jersey's medical marijuana must be addressed. The price of medical marijuana in New Jersey is far above the national average making it inaccessible for many patients," Scotti said.

Some dispensaries offer discounts for veterans and people on social security and public assistance programs.

The state also cuts the registration fee from $200 to $20 for patients who are on Medicaid and other safety net programs for the poor. Of New Jersey's 6,126 registered patients in 2015, 48 percent qualify for the reduced-price registration, which lasts for two years, the report said.

Other highlights of the 2015 annual report include:

• There were 6,126 active participants in the program last year, with 2,557 joining in 2015. There were 6,466 patients as of Feb. 16, 2016.
• There are 362 active physicians who refer patients to the program, 37 of whom joined last year.
• The most common diagnoses for participants were intractable skeletal spasticity (34 percent), severe and chronic pain (25.5 percent) and inflammatory bowel disease (11 percent).
• Of the five dispensaries, Garden State Dispensary in Woodbridge serves about 40 percent of all registered patients; Greenleaf Compassion Center in Montclair about 19 percent; Compassionate Care Foundation in Egg Harbor nearly 18 percent; Compassionate Sciences in Bellmawr, about 14 percent; and Breakwater Treatment and Wellness in Cranbury, about eight percent. Breakwater and Compassionate Sciences opened in late 2015.
• Together the dispensaries produced 68 strains of cannabis.

News Moderator: Robert Celt 420 MAGAZINE ®
Full Article: Is N.J.'s Medical Marijuana Program Still The Nation's Most Expensive?
Author: Susan K. Livio
Contact: NJ.com
Photo Credit: John Munson
Website: NJ.com

 

[TorturedSoul]

The cost of the state's medical cannabis is only slightly higher than the $400 to $450 per ounce illegal street price, according to the U.S. Drug Enforcement Administration, the report said.

IOW, a person in that state who operates completely outside of the law - and, therefore, has an (at least in theory) exponentially greater likelihood of getting arrested, going to jail, losing their property - and custody of their children - still manages to sell at a price that's less than the "legal" sellers do.

Something is WRONG with that logic. IMHO. Am I the only one in the audience that thought that, maybe, just maybe... the price for legally-sold cannabis would be somewhat cheaper than the black market option? Yes, there is going to be more - or at least different overhead when one goes the legal route... But it costs, what, ~$27.50 an ounce to grow absolutely top-shelf cannabis, start to finish?

Non-profit, huh? SOMEONE is sure getting paid...[/RANT]

Just legalize it. Everywhere (federally!), across the board. Increase the requirements for qualifying for a medical (as opposed to medicinal, which it pretty much is for everyone, anyway) - and I'm talking about those states where (figuratively) a hangnail can get you qualified, not those ones where you have to be (again, figuratively) in a coma with the Grim Reaper at the door saying, "Excuse me, but you might wish to get dressed for a bit of a journey." Then, once you have managed to separate those who need it from those who want it (since I'm not making value jugements here, I consider both valid reasons to consume...), decide to make zero profit from the medical-use patients. (Allow for the reasonable covering of expenses - and, yes, labor is an expense.) Charge, profit, and tax "recreational" sales all you like... Some of the (gross) profit can be used to help offset the expenses for medical sales, some of it can go towards tax for infrastructure/etc. and, well, when capitalism works correctly, the market ought to self-adjust.

This [/RANT] has been brought to you by TorturedSoul, lol. It and four bucks will get you a cup of ridiculously-overpriced coffee :rolleyes3 .

Regards,

 

[Radogast]

IOW, a person in that state who operates completely outside of the law - and, therefore, has an (at least in theory) exponentially greater likelihood of getting arrested, going to jail, losing their property - and custody of their children - still manages to sell at a price that's less than the "legal" sellers do.

Something is WRONG with that logic. IMHO. Am I the only one in the audience that thought that, maybe, just maybe... the price for legally-sold cannabis would be somewhat cheaper than the black market option? Yes, there is going to be more - or at least different overhead when one goes the legal route... But it costs, what, ~$27.50 an ounce to grow absolutely top-shelf cannabis, start to finish?

Non-profit, huh? SOMEONE is sure getting paid...[/RANT]

Just legalize it. Everywhere (federally!), across the board. Increase the requirements for qualifying for a medical (as opposed to medicinal, which it pretty much is for everyone, anyway) - and I'm talking about those states where (figuratively) a hangnail can get you qualified, not those ones where you have to be (again, figuratively) in a coma with the Grim Reaper at the door saying, "Excuse me, but you might wish to get dressed for a bit of a journey." Then, once you have managed to separate those who need it from those who want it (since I'm not making value jugements here, I consider both valid reasons to consume...), decide to make zero profit from the medical-use patients. (Allow for the reasonable covering of expenses - and, yes, labor is an expense.) Charge, profit, and tax "recreational" sales all you like... Some of the (gross) profit can be used to help offset the expenses for medical sales, some of it can go towards tax for infrastructure/etc. and, well, when capitalism works correctly, the market ought to self-adjust.

This [/RANT] has been brought to you by TorturedSoul, lol. It and four bucks will get you a cup of ridiculously-overpriced coffee :rolleyes3 .

Regards,

I'm with you pretty much all the way EXCEPT the production cost of cannabis in New Jersey is going to be an indoor price closer to $50/oz than $27/oz. -- Still lots of room to lower prices and make a reasonable profit.

 

[TorturedSoul]

I'm with you pretty much all the way EXCEPT the production cost of cannabis in New Jersey is going to be an indoor price closer to $50/oz than $27/oz. -- Still lots of room to lower prices and make a reasonable profit.

I wasn't counting fees, just electricity for lights (etc.), nutrients, and the like. And I was assuming a reasonable sized yield in an ongoing grow (as a one-ounce, one-time grow is, realistically, going to cost more than $27). But even if it's $50 - or $100 (it's not... trust me ) - that still equates to a tax/fee/profit setup that is multiplicative, not additive. And that's not right no matter WHAT the product in question is.

Sometimes I wonder if things were better back in the day when everyone who felt like growing just did and then told their friends, when asked where the killer bud came from, "I ran into this guy hitchhiking. He said his name was Cool, and he was looking to sell the bud he had with him..."

Err... Or was that just me, lol? Anyway, back then, most people found it hard to get busted if they kept their mouth shut and, well... had an IQ greater than that of the average turnip. Back then, if you used a lot of water you'd just get a call from the city asking you if you have a leak (no, but thanks for asking); if you used a lot of electricity you'd just make the electric company people happy, and helicopters... were mainly all busy over in Vietnam.

Now it's a business. Well, it always was, for some. But these days, it seems like people are getting greedy.

Forgive me my ranting, please, folks. Right now, if my world got any drier... I'd be living in the Sahara Desert. It "might be" coloring my mood.

Regards,

 

[dean47]

Is N.J.'s Medical Marijuana Program Still The Nation's Most Expensive?...NO!

In New York State, as a medical marijuana patient, I have purchased vapor pen cartridges for $94.00 each (from Vireo Health). Each cartridge contains .25 grams of cannabis extract. That translates to $376.00 per gram. When juxtaposed to California or Colorado prices of $50 to $60 per gram (market stabilized over time), it is clear that the New Jersey medical marijuana is a bargain compared to New York.

 

[Radogast]

Re: Is N.J.'s Medical Marijuana Program Still The Nation's Most Expensive?...NO!

In New York State, as a medical marijuana patient, I have purchased vapor pen cartridges for $94.00 each (from Vireo Health). Each cartridge contains .25 grams of cannabis extract. That translates to $376.00 per gram. When juxtaposed to California or Colorado prices of $50 to $60 per gram (market stabilized over time), it is clear that the New Jersey medical marijuana is a bargain compared to New York.

New York State medical marijuana law is so bad, I count it like Florida. It's technically a law but it doesn't help patients.

$94 per 0.25 grams, 6+ grams of concentrated oil per OZ of bud, that translates to over $2200/oz of bud turned into oil.