Impact of Recreational Marijuana Laws on Workers’ Compensation Benefits

By Vennela Thumula, Johanna Catherine MacLean, David Powell, Sebastian Negrusa

April 30, 2025 Related Topics: Indemnity Benefits, Medical Costs, Rx Drugs and Opioids, Worker Outcomes

As more states adopt recreational marijuana laws (RMLs), this new study examines changes in workers’ compensation claim frequency and outcomes such as per-claim medical payments, indemnity benefits, temporary disability duration, and prescription drug utilization and costs.

This research is important as marijuana use continues to rise. Our study highlights the complex effects RMLs have on work injury risk and workers’ compensation claim costs.

The study’s findings can inform debates on issues such as marijuana rescheduling, occupational treatment guidelines, state THC (tetrahydrocannabinol) regulations, or marijuana taxes. The analysis covers 31 states, using data from workers’ compensation claims filed between October 2012 and March 2022.

Impact of Recreational Marijuana Laws on Workers’ Compensation Benefits. Vennela Thumula, Johanna Catherine MacLean, David Powell, and Sebastian Negrusa. April 2025. WC-25-21.

Copyright: WCRI

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Research Questions:

  • How did the adoption of RMLs affect overall workers’ compensation claim frequency?
  • Were the effects different among younger workers, or those in safety-sensitive or physically demanding jobs?
  • What impact did RMLs have on medical payments per claim?
  • Were there changes in prescription drug use due to RMLs, including opioids?
  • Did RMLs affect indemnity benefits and disability duration?
  • Did the impact of RMLs on these outcomes change over time?

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