Several states are considering legislation that would exempt insurers from paying for the medical marijuana costs of workers, though New Jersey is weighing up a bill that would do just the opposite under certain conditions.

Kansas, Nebraska and South Dakota are the states that have legislation pending that would explicitly preclude medical cannabis payments from self-insured employers and workers compensation insurers.

In Mississippi, Gov. Tate Reeves signed a bill – SB 2095 – to legalize medical marijuana in the state into law. The Mississippi Medical Cannabis Act, however, includes provisions to protect insurers from paying for medical marijuana treatment costs and another that affirms the right of employers to deny worker’s compensation on the basis of a positive drug test.

Meanwhile, lawmakers in Kansas introduced a bill – SB 158 – that would establish a medical cannabis program in the state and includes provisions that mean insurance companies would not be liable for covering the costs of the treatment for workers. The bill also states that registered medical marijuana patients “shall not be denied” compensation for injuries sustained at work so long as the individual uses cannabis in compliance with state law and there is no indication they’ve been impaired at work for the past two years.

Nebraska lawmakers are considering a similar measure that would also legalize medical marijuana in the state while protecting insurers and employers from paying for medical cannabis treatment for workers.

In South Dakota, the Senate Health and Human Services Committee approved a bill that would amend the state’s medical marijuana laws to shield more insurers from reimbursing workers’ medical cannabis costs. Currently, private insurers do not have to pay these costs and if the new bill is enacted into law this would extend to workers compensation insurance carriers and self-insured employers providing workers compensation benefits.

New Jersey is considering a different approach, however. One lawmaker filed a bill – SB 309 – that would compel workers compensation insurers to include medical cannabis costs in their coverage. The text of the legislation states that even if it is not feasible for the insurer to pay for medical marijuana directly, they would still have an obligation to reimburse the worker for costs incurred.

The legislation is partly a consequence of a New Jersey Supreme Court ruling which found that workers compensation insurers should be required to pay for medical marijuana used for treating injuries and illnesses.

Despite the raft of states considering legislation to shield insurers from paying for medical marijuana, a recent study found that workers compensation claims are lower in states that legalized adult-use cannabis.