Medical Marijuana Faces Uncertain Future In U.S. Health Care System

Robert Celt

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As public support for marijuana legalization continues to rise and after 23 states plus the District of Columbia legalized it for medical use, questions about how traditional health care plays a role in the industry are becoming more pressing.

Medical marijuana cannot be covered by health insurance, even in states where the drug is legal. Health insurance can only cover FDA-approved medications, and marijuana, as a Schedule I drug, cannot be FDA-approved.

As the Nevada presidential caucuses near, the Reno Gazette-Journal in partnership with USA Today is taking an in-depth look at health care issues, including what's next for medical marijuana and its relationship with the nation's health care system.

A shortage of medical research

Because marijuana is still considered an illegal drug of the highest order in the United States, there's been little medical research related to it, which is often dependent on limited grants from the government.

"It's likely that legalization would result in more research," said Aaron Herzberg, a corporate lawyer for CalCann Holdings, a company that secures marijuana dispensary licenses. "The federal government has made it very difficult to research the medical benefits of marijuana, but if the government re-schedules it to Schedule II or III to allow further research, you're going to see studies take place to show how it can be used as medicine."

Because research is relatively scant, there is a lack of robust data to back up the effectiveness of different strains when paired with specific medical conditions.

Currently, patients choose what strain they want from a dispensary. Although some strains are known to provide relief for specific ailments, patients are essentially on their own when it comes to figuring out what type of marijuana is best for their condition.

"We're seeing a very expensive trial and error process for patients," said David Goldstein, co-founder and CEO of software company PotBotics.

PotBotics is one company that has tried to innovate despite the regulations around marijuana. The company has created a searchable online index called PotBot that is going live at the end of January. The program, which will be HIPAA compliant, will provide strain recommendations based on a patient's symptoms.

High regulation means high costs

One ounce of medical marijuana can run between $200 and $300 or more depending on the strain. That creates a challenge for patients who are on fixed incomes, such as retirees or people on disability, or people who have other high medical costs, such as cancer patients.

Some dispensaries address the income disparity by offering discounts to low-income patients, but there are few official programs in place to provide consistently low prices. Medical and recreational purchases, however, do have different standards for pricing.

In Nevada, where voters may legalize recreational marijuana on this year's ballot, dispensaries anticipate that pricing will be different for medical marijuana card holders and recreational users, whose purchases may be subject to a tax of up to 30 percent. Card holders, on the other hand, are only charged a sales tax plus a 2 percent excise tax. Similar standards are held in states where recreational cannabis is legalized, like Colorado.

In the doctor's office

For states where medical marijuana is legal, doctors cannot prescribe it.

Instead, doctors can provide an official recommendation to be included in a patient's application to receive a state-issued medical marijuana card. Though some doctors are supportive of medical marijuana, others are not as eager to recommend it, primarily because of the dearth of research around its effectiveness for different medical conditions.

But even for doctors who are pro-cannabis, patients can still experience cost barriers.

"Doctors are becoming more comfortable discussing cannabis, but what you're seeing right now is an interesting environment for insurance," Goldstein said. "A general checkup is covered by insurance, but that may finish with a cannabis consultation that comes out of a patient's pocket."

The FDA-approved workaround

Synthetic marijuana, like Marinol, is an FDA-approved medication and can be both prescribed and covered by health insurance in the U.S. The drug, however is not always a popular option for patients.

"Many people in the cannabis industry don't like the notion of synthetics because the ones that have been approved don't seem to be as broadly efficacious as the plant," said Seth Yakatan, co-founder and interim-CEO of Kalytera, a developer of non-psychoactive cannabinoid medicines.

The drug that Yakatan's company is developing was discovered in olive oil and is a structural analog to the medical compounds found in cannabis. Essentially, his patented drug is being developed to mirror the medical benefits of marijuana without actually taking anything from the plant. Despite predictions of possible federal legalization, Yakatan thinks the market for FDA-approved, cannabis-like drugs will stay strong.

Since pharmaceutical companies understand doses and side effects of FDA-approved medications, Yakatan said that laboratory-controlled cannabinoids can better substantiate medical claims compared to the plant.

"Because it's a plant, there's no quality assurance or quality control," Yakatan said. "Therapeutic drugs are usually one molecule that we know, understand and can dose. Cannabis is made up of up to 60 or 70, or sometimes 130, active pharmaceutical ingredients."

As medical applications of marijuana continue to be explored, industry employees have sought innovative ways to work through the red tape of U.S. drug laws. State and federal policies are predicted to continue adapt to changing public opinion, and the legitimacy of medical marijuana will continue to be tested.

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Full Article: Medical Marijuana Faces Uncertain Future In U.S. Health Care System
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