University Study Shows Legalized Marijuana Could Cut Medicare Costs by Billions (Here’s Why)

Video Source: University of Georgia

By Marco Torres | Prevent Disease


A well-known fact still denied by conventional medicine is that marijuana saves lives by curbing highly addictive prescription painkillers known to kill tens of thousands every year. In fact, drug overdoses by prescription opioids kills more people than suicide, guns or motor vehicle accidents. University of Georgia researchers have now found that implementing medical marijuana could also reduce Medicare costs by billions.

Related Article: Medical Marijuana Shows Promise for Treating Depression

There is an abundance of evidence that the suppression of medical marijuana is one of the greatest failures of a free society, journalistic and scientific integrity as well as our fundamental values. There is no plant on Earth more condemned than marijuana.

There is solid evidence that marijuana is effective at treating one big condition: chronic pain. There is a abundance of evidence finding that there is at least a 30% greater improvement in pain with cannabinoid compared with placebo across hundreds of studies.


Some studies have examined the effect of adding a cannabinoid to the regimen of patients with chronic pain who report significant pain despite taking stable doses of potent opioids.

An investigational cannabinoid therapy helped provide effective analgesia when used as an adjuvant medication for cancer patients with pain that responded poorly to opioids, according to results of a multicenter trial reported in The Journal of Pain, published by the American Pain Society.

A NBER working paper found that access to state-sanctioned medical marijuana dispensaries is linked to a significant decrease in both prescription painkiller abuse, and in overdose deaths from prescription painkillers. The study authors examined admissions to substance abuse treatment programs for opiate addiction as well as opiate overdose deaths in states that do and do not have medical marijuana laws.

Medical marijuana is having a positive impact on the bottom line of Medicare’s prescription drug benefit program in states that have legalized its use for medicinal purposes, according to University of Georgia researchers in a study published in the July issue of Health Affairs.

The savings, due to lower prescription drug use, were estimated to be $165.2 million in 2013, a year when 17 states and the District of Columbia had implemented medical marijuana laws. The results suggest that if all states had implemented medical marijuana the overall savings to Medicare would have been around $468 million. Translate those savings over a period of just one decade and the figures escalate to billions of dollars.

Compared to Medicare Part D’s 2013 budget of $103 billion, those savings would have been 0.5 percent. But it’s enough of a difference to show that, in states where it’s legal, some people are turning to the drug as an alternative to prescription medications for ailments that range from pain to sleep disorders.

Their most intriguing finding is that medical marijuana laws alone aren’t enough to cause a significant shift in prescription painkiller use. Rather, the availability of medical marijuana through licensed dispensaries is the key

Because medical marijuana is such a hot-button issue, explained study co-author W. David Bradford, who is the Busbee Chair in Public Policy in the UGA School of Public and International Affairs, their findings can give policymakers and others another tool to evaluate the pros and cons of medical marijuana legalization.

“We realized this question was an important one that nobody had yet attacked,” he said.

“The results suggest people are really using marijuana as medicine and not just using it for recreational purposes,” said the study’s lead author Ashley Bradford, who completed her bachelor’s degree in sociology in May and will start her master’s degree in public administration at UGA this fall.

To obtain the results, they combed through data on all prescriptions filled by Medicare Part D enrollees from 2010 to 2013, a total of over 87 million physician-drug-year observations.

They then narrowed down the results to only include conditions for which marijuana might serve as an alternative treatment, selecting nine categories in which the Food and Drug Administration had already approved at least one medication. These were anxiety, depression, glaucoma, nausea, pain, psychosis, seizures, sleep disorders and spasticity.

They chose glaucoma in particular because while marijuana does decrease eye pressure caused by the disease by about 25 percent, its effects only last an hour. With this disorder, they expected marijuana laws–as a result of demand stimulation–to send more people to the doctor looking for relief. And because taking marijuana once an hour is unrealistic, they expected to see the number of daily doses prescribed for glaucoma medication increase.

They were not disappointed. While fewer prescriptions were written for the rest of categories–dropping by 1,826 daily doses in the pain category and 265 in the depression category, for instance–the number of daily doses for glaucoma medication increased by 35.

“It turns out that glaucoma is one of the most Googled searches linked to marijuana, right after pain,” David Bradford said. “Glaucoma is an extremely serious condition” that can lead quickly to blindness. “The patient then goes into the doctor, the doctor diagnoses the patient with glaucoma, and no doctor is going to let the patient walk out without being treated.”

Marijuana is classified federally as a “Schedule 1” under the Controlled Substances Act. With its placement in this most restrictive of drug categories, it means that the federal government has determined it has high abuse potential, no medical use and severe safety concerns. Several states don’t agree with this assessment, and, in 1996, California became the first to legalize it for medical purposes, followed by Alaska, Oregon and Washington in 1998. As recently as June of this year, Pennsylvania and Ohio passed laws allowing its medical use.

Related Article: Medical Marijuana Could Be Legal in Pennsylvania by Week’s End

Each of the 25 states plus the District of Columbia with a medical marijuana law has different guidelines for its use and possession limits. Also, physicians in these states may only recommend its use; it remains illegal for them to prescribe the medication.

Patients also can’t walk up to their neighborhood pharmacy to pick up a marijuana prescription; they have to either go to a dispensary or grow it themselves–and the legality of having marijuana plants differs by state. This lack of patient oversight by a trained health care profession, in particular, worries David Bradford.

“Doctors can recommend marijuana and in some states can sign a form to help you get a card, but at that point you go out of the medical system and into the dispensaries,” he said. “What does this mean? Do you then go less frequently to the doctor and maybe your non-symptomatic hypertension, elevated blood sugar and elevated cholesterol go unmanaged? If that’s the case, that could be a negative consequence to this.”

The researchers will explore these consequences further in their next study, Ashley Bradford said, which will look at medical marijuana’s effects on Medicaid, a joint federal and state program that helps with medical costs and typically serves an older population.

They expect the cost savings seen in their current study to be repeated when they look at Medicaid, saying their findings suggests a more widespread state approval of medical marijuana could provide modest budgetary relief. Their current study suggests total spending by Medicare Part D would have been $468.1 million less in 2013 if all states were to have adopted medical marijuana laws by that year, an amount just under 0.5 percent of the prescription drug benefit program’s spending.

Sources:
healthaffairs.org
washingtonpost.com
sciencedaily.com
nber.org

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  1. Save us billions? Big pharma is going to do everything it can to make sure that doesn’t happen…

  2. If I ever need medicinal marijuana, I surely won’t need a doctor’s Rx. That’s the whole idea of plant medicine to me, treat your own ailments with nature’s gifts. No insurance forms needed.
    Legalize it -_-

  3. Curing and preventing morbid obesity would cut medicare costs by billions also…….

  4. Kim Rice Kim Rice says:

    Expect Big Pharma to use this study to defend spending billions to prevent legalization.

  5. Light up and leave us alone….

  6. Big pharma does not WANT us healthy!

  7. the pharma lobby will never let it pass

  8. …and cost the pharmaceutical companies and the doctors who help promote their medications millions+.

  9. But they’ve been threatening, for decades, that if you come up positive for marijuana, you can loose your benefits. I’ve seen it in the VA, not food stamps, or SS, though.
    DEA, needs to declassify it, for sure….!

  10. Big Pharma will not like that

  11. It may save lives in the long run, but you will go for broke trying to get a Dr. to write a script for it.

  12. There has never been a proven problem whit marijuana prohibition was only a political decision due to interference from big pharm and those who were afraid of peace and love awakening

  13. Lee Black Lee Black says:

    That’s the problem big Pharma and the medical profession will loose out on their market share and they will never allow that to happen unless it benefits THEM!!!

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