PLEASE NOTE THAT THIS PODCAST IS A DISCUSSION ABOUT MEDICAL MARIJUANA. IT IS NOT INTENDED TO BE LEGAL ADVICE BUT INSTEAD IS A CONVERSATION. FOR ANY LEGAL QUESTIONS, PLEASE CONSULT AN ATTORNEY. 

MR. MAZARIEGOS ORIGINALLY WAS A LITIGATION ATTORNEY WHO CHANGED HIS CAREER AFTER HE WAS SECONDED FROM HIS LAW FIRM TO ANOTHER COMPANY TO HANDLE WORKERS’ COMPENSATION CLAIMS:  He discovered he had a knack for it, and really enjoyed it. He didn’t want to go back to working as a billable hour attorney and was offered a position as a Manager of a Workers’ Compensation Unit. The company that offered him the job liked that he brought a different perspective and could think outside the box. He accepted the position and moved to North Carolina. He specialized in “runoff claims” and “legacy claims.” He has been in Workers’ Compensation since 2010 and recently took a new role in Risk Management.

THE MEDICAL MARIJUANA LANDSCAPE HAS DRASTICALLY CHANGED IN THE LAST TEN YEARS: While 38 states have legalized medical marijuana, and 23 states have legalized recreational marijuana, it is a Schedule One drug, which means it is federally illegal. The opiate crisis has forced doctors to search for alternate medicines. There is a lot of discussion as to whether marijuana has medicinal value.

THE CONUNDRUM: While some states are ordering carriers to reimburse injured workers for their marijuana post-purchase, this is creating unease due to it being federally illegal. Carriers are concerned if reimbursement constitutes aiding and abetting a federal crime. Due to there being 50 states, there are 50 different opinions. There hasn’t been a Supreme Court decision that would give a definitive decision. It will take an act of Congress to clearly define what actions by the carrier are legal and illegal. Until that happens, the confusion will continue. 

CHALLENGES WITH MEDICAL MARIJUANA REIMBURSEMENT:  An injured worker is not given a prescription for medical marijuana; they are given a recommendation. The injured worker must be registered in the state’s Medical Marijuana Program, and their physician must be enrolled as well to obtain a recommendation for marijuana and to obtain a reimbursement. The injured worker will then get the marijuana from a dispensary. The injured worker must pay out of pocket and then send to the carrier for reimbursement. Everything is done post-transaction, which means the carrier is not being afforded its rights under the WC State Statutes. When an injured worker fills a standard prescription, there are medical treatment guidelines, formularies, and medical authorizations that are usually required. All of that disappears with reimbursing medical marijuana. There currently aren’t any recommended dosage potency studies, and the pricing is unstable. It is equivalent to an injured worker walking into a pharmacy and saying, “My back hurts. Give me what you have back there.” There isn’t any control, which can be problematic for carriers. 

WHAT DOES THE ROAD AHEAD LOOK LIKE FOR MEDICAL MARIJUANA IN THE WORKERS’ COMPENSATION INDUSTRY? Many legal experts feel that it is very likely to be taken off Schedule One and will become a Schedule Three Drug, which will mean it will no longer be federally illegal. There is also a lot of bipartisan support for the Safe Banking Act, which would allow the Cannabis Industry to have financial services. Currently, many banks and credit card companies refuse to do business with them due to Marijuana being federally illegal. Many cannabis companies are cash-only, which can be very dangerous. It is very difficult for them to obtain insurance, which is extremely risky. If the Safe Banking Act passes, this will be a game-changer for the industry. The world is changing, and as carriers, there is a lot to consider. It is important to know the attorneys in your jurisdiction so they can give you good counsel. It is important to get ahead of the curve and be prepared for it sooner rather than later.