minnesota marijuana
Marijuana Business News Medical Marijuana Policy

High Prices Will Hurt Minnesota’s Medical Marijuana Industry And Harm Patients

minnesota marijuana
(image via minnesota norml)

Every industry that experiences too much regulation will be hindered because the increased regulations translate to increased prices. The cannabis industry is not immune to this economic principle. Sure, the cannabis industry needs to be regulated to a certain extent to keep the industry above reproach. However, prices need to be low enough so the regulated system can compete with the unregulated, illicit market. This is even more important when the market is only a medical market and the consumers are patients battling severe and debilitating medical conditions. Minnesota’s medical cannabis regulations are likely to lead to prices so high that many patients will be unable to afford medicine, not to mention unnecessarily limit the size of the industry. Per Marijuana Business Daily:

One of the licensed companies, Minnesota Medical Solutions (MinnMed), said a patient can expect to pay between $100 and $500 a month for its products, while the other, Leafline, will likely offer a month’s supply of cannabis-based medicine for between $250 and $500, according to the AP.

The high pricetags are a direct result of state regulations that prohibit smokeable marijuana and require cannabis to be converted into pills, oils or vapors. Also adding to the cost are tight security requirements, along with transportation costs from production facilities to dispensaries.

States that allow cannabis industry operations need to balance regulations with consumer sticker shock. This goes for medical cannabis regulations as well as adult, social-use cannabis regulations. A good example is Washington and Oregon. Washington has a lot of regulations in place, which has led to prices of upwards of $30 per gram. Compare that to what regulations being proposed in Oregon, which will be far less than what Washington businesses are experiencing, which should result in much lower prices, bringing more people into the licensed and regulated market. Lower prices will lead to more consumers being able to make purchases, which will lead to a larger industry, which will ultimately benefit states in the form of more tax revenue and low-income patients who can’t afford exorbitant prices. States will eventually recognize the economic realities of cannabis, but hopefully too many patients won’t be priced out before more reasonable regulations are implemented.

Source: MarijuanaPolitics.Com - syndicated with special permission

  • Erik11235813

    Not only will the patients pay sky high prices, the companies involved will lose money.
    The only reason they are in it in my opinion, is to have first crack at recreational marijuana permits.

    But the law as it is will be near impossible to make a profit.

  • Nathaniel

    States over regulation leads me to believe they want the black market to continue. Why else would a state price willing consumers out of a market?

  • JohnS

    These are regulations designed to benefit BIG PHARMA who would be better positioned to monetize and market the products in adherence to the regulations.

    It is pretty simple… “Legalizing it would jeopardize the pharma industry, so let’s make a law attractive for those pharma companies to be able to expand in that space here in Minnesota, creating jobs and tax revenues.”

    Since the regulations were designed with unfair biases tipping towards support for one industry over others, Minnesota residents need to expose the corruption in their government that allows such regulations to be passed.

  • Alexxander Kinney

    That price is too high for Minnesotans. We need mmj shops like colorado has. Not robocop mmj dispensaries.