Pennsylvania Supreme Court Holds That CBD Products Can Be Reimbursable Medical Expenses Under Workers’ Compensation

In a unanimous and long-awaited decision, the Pennsylvania Supreme Court held that when a treating physician recommends an item—such as CBD oil—as part of a treatment plan for a work-related injury, that item qualifies as a reimbursable medical expense under Section 306(f.1)(1)(i) of the Pennsylvania Workers’ Compensation Act (the “Act”). The ruling is a major development not just for injured workers, but for the broader cannabis and hemp industries in Pennsylvania.

The Pennsylvania Supreme Court broadly interpreted “medicines and supplies” under the Act to cover anything that a physician, exercising professional judgment, includes in a treatment plan, not just FDA approved categories. That includes non-prescription and over-the-counter products like CBD oil.

This ruling is especially significant due to the Court’s express acknowledgment of Pennsylvania’s legal definition of hemp. In reaffirming the General Assembly’s statutory language, the Court emphasized that “hemp is legal if it has a Delta-9 THC concentration of not more than 0.3 percent on a dry weight basis.” That definition necessarily includes CBD products, removing any ambiguity that might have previously surrounded their legal status under Pennsylvania law.

The claimant in this case was an attorney who purchased CBD oil from a local health store after his doctor recommended it for treatment of a back injury. When the law firm’s insurance carrier refused to reimburse him, the plaintiff challenged the denial. The Workers’ Compensation Judge and Commonwealth Court sided with him.

Importantly, the Court also held that the reimbursement obligation applies even when the claimant purchases the item directly. If the product is medically justified and included in the treatment plan—whether through a prescription or a physician’s report—insurers are on the hook for the cost. These items are not subject to the cost containment provisions of the Act unless purchased from a provider.

This ruling opens the door for increased access to hemp-derived wellness products in medical treatment plans, including CBD oils, salves, and other cannabinoid-based therapeutics. For hemp industry stakeholders, it offers a clear signal: when hemp-derived CBD products are properly sourced and documented, they are not only lawful—they may be reimbursable medical costs.

Going forward, treating physicians should take care to document any CBD-related recommendations clearly in the treatment plan. Likewise, claimants should retain receipts and provide evidence that the item was medically directed.

This ruling reaffirms the acceptance of hemp-derived products in Pennsylvania.

For information about national and state cannabis law matters and regulatory compliance, please contact our Cannabis Law Practice Group attorneys: William J. Beneduce, Esquire (wjbeneduce@norris-law.com) for New Jersey Cannabis matters or contact our offices at (908)722-0700