Will Health Insurance Pay for CBD Oil if Prescribed for Pain? - April 2024

Will Health Insurance Pay for CBD Oil if Prescribed for Pain

Currently, in the United States, no CBD oil insurance coverage or health insurance companies cover the use of CBD oil or medical cannabis, even when authorized by a healthcare practitioner⁽⁵⁾.

Congress authorized hemp in the 2018 Farm Bill. However, CBD Oil extracted from hemp remains a Schedule I substance because it is derived from cannabis. Before health insurance coverage covers CBD Oil, the FDA must approve it.

What is CBD? 

CBD is a natural compound from the Cannabis sativa plant that is not psychoactive and does not induce mood changes. 

Medical research suggests that CBD Oil, a non-psychoactive derivative of cannabis, can be used to alleviate pain and inflammation. 

CBD is one of the many phytocannabinoid compounds present in cannabis plants. CBD is a natural compound obtained from hemp plants which by taxonomic classification is a plant belonging to the Cannabis sativa L. family⁽⁶⁾. 

The Benefits of Using CBD Oil

Cannabidiol, popularly called CBD, is a natural remedy used for many common ailments and medical conditions. CBD oil may offer potential help in the following: 

Seizures

Clinical trials designed to examine the effects of CBD treatment in different forms of epilepsy showed findings on CBD usage in therapeutic applications⁽⁷⁾. 

Medical application of CBD indicated anti-seizure, antipsychotic, neuroprotective, anti-depressant, and anxiolytic properties. The neuroprotective activity of CBD seems to link to its excellent anti-inflammatory and antioxidant properties⁽⁸⁾. 

Gastrointestinal Symptoms

Clinical trials showed how cannabinoids suppress gastric acid secretion⁽⁹⁾. In rodents, the primary psychoactive ingredients of high-quality marijuana and the synthetic cannabinoid nabilone delay the rate of stomach emptying. 

Activating cannabinoid CB1 receptors by psychoactive and non-psychoactive cannabinoid agonists slows stomach emptying.

Cancer Cells

Cannabinoid extracts may have beneficial effects on cancer treatment. In vitro research consistently demonstrated that CBD, THC, and synthetic compounds inhibited tumor growth⁽¹⁰⁾. 

Combining cannabinoid receptor ligands and chemotherapy resulted in synergistic treatment outcomes.

Chronic Pain

Studies showed how CBD may provide pain relief and decrease chronic inflammation in cases of rheumatoid arthritis⁽¹¹⁾. Immune cells and RASF (rheumatoid arthritis synovial fibroblasts) may be particularly vulnerable to a second strike produced by CBD, resulting in the resolution of inflammation.

Anxiety Issues

Clinical studies identified CBD’s potential as a treatment for anxiety-related disorders⁽¹²⁾. 

Persistent fear may result in Impairment and may manifest in various neuropsychiatric illnesses, such as generalized anxiety disorder (GAD), panic disorder (PD), post-traumatic stress disorder (PTSD), social anxiety disorder (SAD), and obsessive-compulsive disorder (OCD). 

Skin Issues

CBD has also garnered significant attention for its anecdotal therapeutic potential for various pathologies, including skin and cosmetic disorders.

Clinical findings indicated that CBD has anti-inflammatory properties and offers potential help to reduce acne⁽¹³⁾. 

How Does Health Insurance Treat CBD

CBD oil, which is extracted from hemp plants, is still classified as a Schedule I drug, as it is derived from cannabis. Approval from the FDA is needed before a health insurance policy covers CBD Oil⁽¹⁴⁾. 

Current legislation prohibits the prescription of any Schedule I drug, and health insurance providers will not cover any prohibited medicine⁽¹⁵⁾. 

The majority of health insurance policies in the United States have an exclusion called the Illegal Acts Exclusion. This clause states that if a health problem occurs due to the policyholder’s voluntary participation in illegal conduct, the policyholder will not be covered⁽¹⁶⁾.

In a state where medical marijuana is permitted, insurance companies will not provide insurance pay for prescription products such as CBD lotion or CBD oil, even for chronic pain. This conduct will be considered illegal and will reject coverage⁽¹⁷⁾. 

In the United States, all health insurance plans are regulated by a Health Care Formulary, a list of medicines that an insurance plan provides coverage. Health insurance companies cover only those drugs approved by the FDA (Food and Drug Administration)⁽¹⁸⁾.

Other Options for Patients on CBD Oil and Health Insurance

An individual using CBD oil may utilize funds from the HSA (Health Savings Account) or FSA (Flexible Spending Account) to cover various health-related costs that insurance does not cover⁽¹⁹⁾. 

However, for HSA or FSA to pay or cover an item, it must be on a list of qualified expenses. While medical marijuana is not federally legal, CBD oil is federally legal. As a result, CBD qualifies for inclusion on this list⁽²⁰⁾.

Legality

The 2018 Farm Bill stipulated the removal of hemp from the Controlled Substances Act’s legal definition of marijuana⁽²¹⁾. 

This rule clarifies that cannabis plants and derivatives that contain no more than 0.3 % THC on a dry weight basis are no longer controlled substances under federal law⁽²²⁾.

1. Does Insurance Cover CBD Oil Use?
   https://www.hubinternational.com/blog/2020/05/does-insurance-cover-cbd-oil/#
2. Does Health Insurance Cover Medical Cannabis?
   https://www.aapainmanage.org/does-health-insurance-cover-medical-cannabis/
3. ibid
4. MEDICARE AND MEDICAL MARIJUANA: WHAT’S COVERED AND WHAT’S NOT.
   https://healthmed.org/medicare-and-medical-marijuana-whats-covered-and-whats-not/
5. Does Insurance Cover CBD Oil Use?
   https://www.hubinternational.com/blog/2020/05/does-insurance-cover-cbd-oil/#
6. What are cannabinoids?
   https://adf.org.au/drug-facts/cannabinoids/#
7. Use of Cannabidiol in the Treatment of Epilepsy: Efficacy and Security in Clinical Trials
   https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6514832/
8. ibid
9. Role of Cannabinoids in Gastrointestinal Mucosal Defense and Inflammation
   https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5333598/
10. Potential Use of Cannabinoids for the Treatment of Pancreatic Cancer
    https://pubmed.ncbi.nlm.nih.gov/30706048/
11. Cannabidiol (CBD): a killer for inflammatory rheumatoid arthritis synovial fibroblasts https://www.nature.com/articles/s41419-020-02892-1?fbclid=IwAR1U5TOnBCtfUBq75Afr6KBDBKH31KBzadO4pWBCPzRzFWW37cUaa71dlF0
12. Cannabidiol as a Potential Treatment for Anxiety Disorders
    https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4604171/
13. Therapeutic Potential of Cannabidiol (CBD) for Skin Health and Disorders
    https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7736837/
14. Does Health Insurance Cover Medical Cannabis?
    https://www.aapainmanage.org/does-health-insurance-cover-medical-cannabis/
15. ibid
16. ibid
17. ibid
18. ibid
19. MEDICARE AND MEDICAL MARIJUANA: WHAT’S COVERED AND WHAT’S NOT.
    https://healthmed.org/medicare-and-medical-marijuana-whats-covered-and-whats-not/
20. ibid
21. FDA Regulation of Cannabis and Cannabis-Derived Products, Including Cannabidiol (CBD) https://www.fda.gov/news-events/public-health-focus/fda-regulation-cannabis-and-cannabis-derived-products-including-cannabidiol-cbd
22. ibid