The cannabis industry is experiencing a surge in growth, with both medical and recreational use gaining traction across the United States and globally. However, while recreational cannabis has captured much of the public’s attention, the role of medical marijuana, the bedrock of the cannabis movement, continues to be a critical topic in policy discussions.
Bryna Dahlin, a partner at Benesch Law and chair of the firm’s cannabis industry group, sheds light on the evolving landscape of medical marijuana. She highlights a growing trend: medical marijuana, often overshadowed by the excitement surrounding adult-use legalization, is carving its own path in the market. This is partly due to the blurred lines between recreational and medical use, as many individuals turn to cannabis for stress and anxiety relief, blending personal enjoyment with therapeutic benefits.
Despite the booming recreational market, Dahlin emphasizes the essential role of medical marijuana for patients who rely on it for conditions like chronic pain, epilepsy, and PTSD. This underscores the critical need for continued investment and policy support to ensure access to this vital form of medicine.
One compelling factor driving the use of medical marijuana is the significant tax advantages it offers in states like Illinois. Medical cannabis cardholders in Illinois pay a mere 1% tax on their purchases, compared to the over 40% tax levied on recreational consumers. This substantial tax differential serves as a powerful incentive for individuals to apply for medical marijuana cards, even if their primary use is recreational.
Looking ahead, Dahlin suggests that the future of medical marijuana will be largely shaped by state-level policy rather than national initiatives, barring any changes in federal cannabis scheduling. This decentralized approach is already evident in states like Illinois, where access to the medical patient market is limited to a specific number of licensed dispensaries. This creates a dynamic environment where medical and adult-use dispensaries compete for market share. Some adult-use dispensaries even offer discounts to medical cardholders to attract their business, creating a complex interplay between the two markets.
Dahlin notes that this tension between medical and adult-use cannabis markets is likely to persist, particularly as states strive to balance regulatory frameworks. This issue is expected to be a focal point in the upcoming legislative session in Illinois, as lawmakers navigate the delicate balance between promoting access to medical cannabis and ensuring responsible regulation of the industry.
As the cannabis industry continues to evolve, the conversation around medical marijuana remains crucial in shaping future regulations. Events like the Benzinga Cannabis Capital Conference provide a platform for industry leaders, like Dahlin, to explore these complex issues and offer valuable insights into the next steps for this rapidly growing sector. The future of medical marijuana hinges on the ability of policymakers and industry stakeholders to foster a balanced and sustainable ecosystem that meets the needs of both patients and consumers alike.
