As cannabis reform progresses in the United States and around the world, the role of medical marijuana remains a key issue in policy debates. Despite being a cornerstone of the cannabis movement, medical marijuana has often lagged behind adult-use legalization efforts.
Brina Darling, partner at Benesh Law Firm and chair of the firm's Cannabis Industry Group, shared her thoughts on the subject in an interview ahead of her speech at the upcoming Benzinga Cannabis Capital conference.
Darling stressed that medical marijuana has been overshadowed by the excitement surrounding adult-use legalization. “So many people are using cannabis to relieve stress and anxiety, and for recreation and social activities, so those things get mixed together,” Darling explained.
While the recreational market generates significant revenue, she says medical marijuana continues to serve an important purpose for patients who turn to it for conditions such as chronic pain, epilepsy and PTSD.
Darling pointed to tax incentives as a factor encouraging medical marijuana use in states such as Illinois.
“In Illinois, medical marijuana cardholders pay a 1 percent tax on their purchases, but adult-use cannabis customers can pay more than 40 percent tax,” she said.
This huge difference in tax rates motivates cannabis users to apply for medical marijuana cards, even if they use the product primarily for recreational purposes.
Darling said that absent changes to federal cannabis regulations, the future of medical marijuana will likely be determined by state-level policies rather than a national initiative.
“I think the medical marijuana epidemic will be local, not national,” she said. This is already being seen in states such as Illinois, which limits medical patient access to the market to only 55 licensed dispensaries.
This dynamic has created competition between medical and adult-use pharmacies, with some adult-use pharmacies offering discounts to medical card holders to attract customers. “Some pharmacies, like my favorite, Karma Club in Lincoln Park, are now offering a 30% discount to medical card holders purchasing adult-use drugs. That's great for me, but terrible for the pharmacy, because lowering my tax burden so I can compete means losing 30% of their revenue,” Darling noted.
Looking ahead, Darling expects tensions between the medical and adult-use cannabis markets to continue, especially as states work to balance their regulatory frameworks.
The issue is likely to be a hot topic in Illinois' next legislative session.
“There was some 'drama' surrounding this issue during the last congressional session, and I expect it will be a talking point during the veto session in November if the bill comes up for consideration again,” Darling said.
As the cannabis industry evolves, the debate around medical marijuana will remain important in shaping future regulation, and at the Benzinga Cannabis Capital Conference, leaders like Darling will continue to explore the balance between recreational and medical cannabis and offer insight into next steps for the industry.
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