Is Medical Cannabis Covered by Insurance?

Cannabis May Be a Lifeline. But Will Insurance?

For many older adults and people facing cancer, medical cannabis offers hope where traditional medications fall short. It has been shown to have the potential to ease pain, calm anxiety, reduce nausea and restore appetite, potentially with fewer side effects than opioids or other prescription drugs. For those struggling to feel like themselves again, cannabis isn’t just an alternative—it may be a lifeline to a better quality of life.

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But is it covered by insurance?

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Here, we’ll explore what today’s insurance landscape looks like for medical cannabis, from Medicare and Medicaid policies to private insurance. We’ll also share practical, affordable ways to access care, even if your plan doesn’t apply.

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About EO

At EO, we’re working to help cannabis find its place as a responsibly provided, evidence-based medical treatment. We’re led by medical doctors, healthcare professionals, and cannabis industry leaders, and our clinical team has deep experience in supportive oncology. We provide affordable, federally legal wellness and medicinal cannabis products.

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Does Private Insurance Cover Medical Cannabis?

You’ve talked to your doctor. You’ve heard from friends. Maybe you’ve even tried a product and felt some relief. But then comes the big question: Will my insurance help cover the cost of medical cannabis?

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For most people, the answer is no. 

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The reasons are rooted in decades of complicated federal policy, legal gray areas and regulatory limbo.

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Federal Status

Even though cannabis is legal for medical use in 47 states, the District of Columbia, and 3 territories, the federal government still classifies it as a Schedule I controlled substance. This is the same classification given to drugs like heroin and LSD.

That means:

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• Cannabis is not approved by the U.S. Food and Drug Administration (FDA) for general medical treatment.
  
• It cannot be prescribed in the same way as traditional medications.
  
• It cannot be reimbursed by insurance companies, which typically require FDA approval for coverage.

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This federal prohibition makes insurers, whether private or employer-sponsored, extremely cautious around coverage or reimbursement. Covering cannabis products could open them up to legal liability, regulatory fines or conflicts with federal programs like Medicare Part D or the Affordable Care Act.

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Cannabis, Hemp, Medical Marijuana: What’s the Difference?

Part of the confusion stems from the terminology itself. People often use the terms cannabis, medical marijuana, and hemp interchangeably, but they carry different legal and regulatory meanings.

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• Cannabis refers to the plant genus that includes both marijuana and hemp.
  
• Hemp refers to cannabis with less than 0.3% THC by dry weight. Thanks to the 2018 Farm Bill, hemp-derived products are federally legal, but still not FDA-approved or covered by insurance.
  
• Medical marijuana typically refers to cannabis products with more than 0.3% THC, which are only legal in certain states under tightly regulated programs.

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A Patchwork of State Laws and Federal Conflict

Even with most states legalizing medical cannabis in some form, state laws and regulations governing it vary dramatically from state-to-state in terms of what’s allowed, who qualifies and how patients can access care.

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This creates a legal mismatch. You may be fully compliant with your state’s marijuana laws, but still find yourself paying entirely out of pocket because your health insurance plan follows federal policy.

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It’s a frustrating reality for many patients, especially older adults on fixed incomes or those navigating expensive cancer treatments.

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Does Medicare Cover Medical Cannabis?

Unfortunately, Medicare does not cover cannabis products of any kind, including both medical marijuana and hemp-derived treatments.

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Why Doesn’t Medicare Cover Medical Cannabis?

The reasons come down to a combination of outdated laws and regulatory red tape:

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• Medicare is governed by the same federal laws that still classify cannabis as a Schedule I substance under the Controlled Substances Act. 
• Medicare Part D, which covers prescription drugs, does not include medical marijuana or any cannabis-derived product that hasn't been FDA-approved.
• Hemp-derived products that are federally legal aren’t considered eligible because they lack prescription status and FDA approval.

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Does Medicaid Cover Medical Cannabis?

Like Medicare, Medicaid does not currently cover medical cannabis.

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Why Isn’t It Covered?

Medicaid is a joint federal and state program that provides health coverage to low-income individuals, including many older adults and people with serious health conditions like cancer. Because cannabis remains a Schedule I substance under federal law, Medicaid funds cannot legally be used to cover cannabis-related expenses. This restriction applies nationwide, regardless of individual state laws.

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What About State Programs?

While state-level laws may allow you to use cannabis for medical purposes, state medical programs will likely not help cover the cost. For most patients, especially those with low income or chronic conditions, this creates a frustrating gap in care—medical cannabis may help, but it’s not financially accessible through insurance coverage.

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Alternative Ways to Access Cannabis Treatment

Even though insurance coverage for medical cannabis is basically unavailable, there are other ways people pay for medical coverage. While not all of these ensure cannabis coverage, they may provide access in the future.  

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Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)

You may be wondering if you can use your HSA or FSA funds for cannabis or certain cannabis-related expenses, especially when products are used for medical purposes and recommended by a healthcare provider.

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As of now, you cannot use HSA or FSA funds for cannabis products or cannabis-related expenses like medical marijuana cards or appointments for MMJ cards. 

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Patient Discounts, Bundles and Savings Programs

Because insurance doesn’t yet cover cannabis, many medical cannabis companies offer discounts, bundles or savings programs to make treatment more affordable. In fact, some medical cannabis companies offer free or discounted cannabis products for those with low incomes or chronic conditions, like cancer.

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Will Cannabis Be Covered By Insurance in the Future?

There’s reason for cautious optimism. As public support grows and states continue to legalize cannabis for medical use, pressure is mounting for federal reform. In recent years, there’s been a dramatic shift in how cannabis is viewed, by lawmakers, clinicians and the public:

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• As of 2025, 47 states, the District of Columbia, and 3 territories have legalized cannabis for medical use, with growing bipartisan support for federal reform.
  
• In 2023, the Department of Health and Human Services (HHS) recommended rescheduling cannabis from Schedule I to Schedule III, which would recognize its medical use and potentially ease insurance barriers.
  
• The FDA has already approved a limited number of cannabinoid-based medications (like Epidiolex and Marinol), showing that cannabis compounds can meet regulatory standards under the right framework.
  
• Many states have proposed bills to establish rules requiring private insurance and Medicaid to cover medical marijuana expenses, like Hawaii Bill SB 2586, Maine Bill LD 942, and Massachusetts Bill H.3875. While none of these bills have passed, they demonstrate the shift in how cannabis is viewed. 
  
• Healthcare providers, palliative care specialists and cancer support organizations are increasingly advocating for safe, regulated access to cannabis as part of a comprehensive care model.

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What Needs to Happen?

For cannabis to be included in health insurance plans, including Medicare, Medicaid, and private policies, two major milestones are likely required:

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1. Rescheduling or descheduling cannabis at the federal level. This would lift many of the legal and regulatory barriers preventing insurers from covering cannabis products or consultations.
   
2. FDA approval of cannabis-based therapies. Most insurance companies require FDA approval before covering a drug under their formulary. This means further research, standardization and clinical trials will be essential for cannabis to qualify.

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While progress may be incremental, the momentum is building, and many experts believe insurance coverage for certain cannabis treatments could become a reality within the next decade, especially for use cases backed by strong clinical evidence, such as cancer symptom management or chronic pain.

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Explore Safe, Accessible Cannabis Care Today

Medical cannabis holds real potential for improving quality of life, especially for older adults and people undergoing cancer care. From easing chronic pain and nausea to supporting better sleep and mood, cannabis offers relief where many traditional treatments fall short.

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But despite its promise, insurance coverage hasn’t caught up. Medicare, Medicaid, and private health plans still exclude most cannabis-related products and services, leaving patients to navigate access on their own.

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Personalized Products With Expert Support Built In

That’s where EO can help. We offer purpose-formulated cannabis products and affordable options to help you use medical cannabis safely and effectively, without confusion, stigma or dispensary visits. 

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We offer curated bundles of our most-recommended products, plus subscription options so you can save on the products that work best for you. Because our products are thoughtfully designed to target symptoms, and not to get you high, you won’t waste time or money guessing your way through recreational options.

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Most importantly, every EO product comes with free clinician-led guidance via phone or email. Whenever you have questions about how you can put cannabis to work most safely and effectively, the EO team will be there to guide you.

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The content on this page is for informational purposes. Do not attempt to self-diagnose or prescribe treatment based on the information provided. Always consult a physician before deciding on the treatment of a medical condition.

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