Canada to spend $200 million on medical marijuana for veterans

The Canadian government has been reimbursing former military personnel’s cannabis costs since 2008

A worker at a cannabis plantation in Ontario, Canada, in January 2021.
A worker at a cannabis plantation in Ontario, Canada, in January 2021.Annie Sakkab (Bloomberg)

The Canadian government is on track to spend CA$200 million (around $154 million) on medical marijuana for veterans, an increase of 30% compared to 2021 and 135% compared to 2019. Since 2008, Canada’s Veteran Affairs has been reimbursing former military personnel for what they spend on medically prescribed marijuana.

Canada legalized recreational cannabis in October 2018 (the second country to make such a regulatory change after Uruguay). The government of Justin Trudeau justified the measure as a move to fight organized crime and ensure the safety of consumers. Marijuana for medicinal use, however, has been legal in Canada since 2001. The Canadian Health Ministry backed its decision on the grounds that studies show it can be beneficial for patients who suffer from problems such as anxiety, post-traumatic stress disorder and chronic pain.

In 2008, after overcoming various legal disputes, Veteran Affairs approved a measure to reimburse war veterans for the cost of medicinal marijuana, although reimbursements were to be decided on a case-by-case basis. In 2011, the authorities simplified the procedure to make it accessible to more candidates. That year, 37 people were reimbursed for a total amount of CA$103,400 (81,000). In November 2016, the ministry modified its compensation rules, reducing the daily limit from 10 grams a day to three. The current maximum rate for refunds is $8.50 per gram.

Veteran Affairs stated that medical cannabis is “a developing area of treatment,” and it will continue to review information and “adjust the policy as necessary to guarantee the welfare of veterans and their families.” A Canadian Senate commission called for such a review in 2019, emphasizing the positive results of cannabis for therapeutic purposes, in particular as an effective substitute for highly addictive opioids against chronic pain. Senators also said that the maximum price needs to be constantly evaluated, as costs may exceed what some veterans can afford.

According to the latest data, some 18,000 ex-combatants were reimbursed for medicinal marijuana in 2021, which equated to CA$153 million ($118 million) in federal spending. While experts largely support the plan for veterans, they say it should be accompanied by psychosocial support, especially in cases of anxiety and post-traumatic stress disorder.

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