Legalizing Cannabis Lowers Workers’ Compensation Costs and Reduces Prescription Drug Use, Study Reveals
A groundbreaking new study from the Workers Compensation Research Institute (WCRI) finds that adult-use marijuana legalization leads to a reduction in workers’ compensation costs and prescription drug use, even as the frequency of claims sees a slight rise over time.
Cannabis Legalization Linked to a Gradual Increase in Workers’ Compensation Claims Across Legal States
According to WCRI, states that have legalized recreational marijuana have experienced a gradual increase in the number of workers’ comp claims over time. On average, claims increased by 7.7% within 1.7 years of legalization and rose to 15% after five years. Researchers suggest that this uptick might be related to workplace intoxication or cannabis withdrawal symptoms, potentially heightening the risk of on-the-job injuries.
Despite More Claims, The Average Cost Per Workers’ Comp Case Decreases in Legal States
While claims increased in frequency, the average cost per claim actually declined following legalization. The study found that medical payments per claim dropped by $207 (5.7%) within 12 months after cannabis legalization. This cost reduction is largely attributed to fewer prescriptions being issued, especially opioids and other pain medications.
Prescription Drug Use Among Injured Workers Drops Significantly After Legalization
One of the study’s key findings is a 13.9% decrease in overall prescriptions, including a 11.7% drop in painkiller prescriptions. The proportion of claims involving opioid prescriptions fell by 9.7%, along with noticeable declines in prescriptions for sleep aids. These changes suggest that workers are increasingly turning to marijuana as an alternative pain management option.
Research Based on a Decade of Data and 31 U.S. States
This extensive 51-page report is based on data collected from October 2012 to March 2022, covering workers’ compensation claims across 31 states. It provides a comprehensive view of how marijuana reform impacts both the healthcare costs and the behavior of injured workers over time.
Recreational Cannabis Laws Found to Improve Work Capacity and Reduce Long-Term Disability
Beyond prescription use, the report also notes a decrease in the duration of temporary disability following cannabis legalization. This suggests that access to marijuana may help workers return to the job sooner, possibly due to better symptom management and less reliance on debilitating opioids.
Study Recommends THC Caps and Workplace Safety Measures as Legalization Expands
To address the possible risks of increased claims, the WCRI recommends a range of policies, including capping THC potency, raising cannabis taxes to reduce consumption, and increasing employer education and safety protocols. The study also supports zero-tolerance workplace drug policies and enhanced drug testing to prevent workplace accidents.
Expert Commentary: Cannabis Reform Presents Both Opportunities and Challenges
“This research is important as marijuana use continues to rise,” said Ramona Tanabe, president and CEO of WCRI. “Our study highlights the complex effects RMLs have on work injury risk and workers’ compensation claim costs. This information is relevant for policymakers, insurance carriers, labor advocates, and employers.”
Previous Studies Also Show Legal Cannabis Improves Workplace Outcomes
This isn’t the first report to link cannabis reform to better outcomes. A 2021 study by the National Bureau of Economic Research found that marijuana legalization correlated with improved workforce productivity and fewer workplace injuries. Similarly, a 2020 study found that medical marijuana laws led to cheaper, less frequent workers’ comp claims.
Marijuana Use Trends Show Higher Consumption in Arts, Construction, and Hospitality Sectors
Data from the Centers for Disease Control and Prevention (CDC) reveals that marijuana use is most common among workers in arts, media, food service, construction, and extraction industries. Those in law enforcement, healthcare, and education report significantly lower cannabis usage.
Off-Duty Marijuana Use Not Linked to More Workplace Accidents But On the Clock Use Is Risky
Other research has shown that off-duty cannabis use doesn’t increase workplace injuries, while on-duty use nearly doubles the risk. This underscores the need for clear workplace policies that distinguish between legal personal use and impaired performance on the job.
Legal Cannabis Continues to Reshape Workplace Health Policies and Workers’ Compensation Systems
As nearly 70% of U.S. adults now support marijuana legalization, the implications of these findings are far-reaching. Legal cannabis is not only changing how we think about medical treatment and prescription drug dependency, but also how employers manage workplace safety and health insurance costs.
Cannabis Legalization May Pose New Risks, But Offers Clear Cost-Saving and Health Benefits
In summary, while recreational marijuana laws may lead to a slight rise in workers’ comp claim frequency, they also offer significant benefits: lower claim costs, reduced prescription use, and improved work recovery outcomes. As the cannabis policy landscape evolves, continued research and thoughtful regulation will be essential for maximizing benefits while minimizing potential risks.
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