Workers' Compensation: NJ Cannabis Bill Advances Mandating Workers’ Compensation Coverage

The NJ Assembly will hold a hearing on October 26, 2020 at 10:30am on legislation A1706 that will mandate workers’ compensation carriers to cover coverage for the medical use of cannabis in certain circumstances.

The bill provides that personal injury protection automobile insurance benefits and workers’

compensation benefits must include coverage for costs associated with the medical use of cannabis, provided that the insured or the employee is a qualifying patient authorized for the medical use of cannabis pursuant to the “Jake Honig Compassionate Use Medical Cannabis Act,” P.L.2009, c.307 (C.24:6I- 1 et al).

In addition, the bill provides that an employer or workers’ compensation insurance carrier or private passenger automobile insurance carrier is not required to provide coverage or benefits for costs associated with the medical use of cannabis upon intervention by the federal government to enforce of the federal "Controlled Substances Act" (21 U.S.C. s.802 et seq.).

Lastly, the bill provides that an employer or insurer shall, if for any reason payment by the employer or insurer to the medical cannabis dispensary is not feasible, remit directly to the insured or employee the costs for any benefits associated with the medical use of cannabis upon proof of payment by the insurer to the medical cannabis dispensary.

This bill was pre-filed for introduction in the 2020-2021 session pending technical review. As reported, the bill includes the changes required by technical review, which has been performed.

The public may not attend the Committee meeting in person but may view and participate in the meeting via the New Jersey Legislature home page at https://www.njleg.state.nj.us/.

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