New Jersey’s Workers’ Compensation Insurance Bill would Cover Medical Cannabis

New Jersey has reintroduced a bill that requires workers compensation insurance companies to cover the medical cannabis costs of injured workers. The proposal mirrors legislation from 2024, which did not move out of the Senate Commerce Committee. 

The bill stipulates certain conditions under which workers’ compensation benefits, PIP and health insurance must include coverage of medical cannabis. The bill provides that personal injury protection automobile insurance benefits, workers’ compensation benefits, and health benefits plans must include coverage for costs associated with the medical use of cannabis, provided that the insured, employee, or covered person is a qualifying patient authorized for the medical use of cannabis pursuant to the ‘Jake Honig Compassionate Use Medical Cannabis Act.'” — S.1943/A.4371 bill text 

The bill would require medical cannabis to be considered a compensable medical benefit as long as it’s authorized for the employee’s condition. The legislation specifies that if insurers or employers cannot pay dispensaries directly, they must reimburse workers for the cost of medical cannabis upon proof of payment; however, employers or insurers would not be required to provide reimbursement or coverage if the federal government were to enforce the Controlled Substances Act.  

The measure is currently being considered by the Senate Commerce Committee.