From Prohibition to Prescription the Future of Marijuana
Published January 30th, 2026
By Eddy Canavan, ARM, AIC
Over the last five years, Washington has been working to reclassify marijuana from a schedule 1 illicit controlled substance to a schedule 3 drug.
According to the Drug Enforcement Agency website, schedule 1 drugs are defined as “substances with no currently accepted medical use and a high potential for abuse.” In addition to marijuana, examples of schedule 1 drugs include heroin, LSD, ecstasy, methaqualone and peyote. Schedule 1 drugs are classified as having no medical use.
History of Marijuana Classification
In 1970, Roger O. Egeberg, Assistant Secretary of Health sent Harly O. Staggers, Chairman of the House Committee on Interstate and Foreign Commerce a memo, urging Congress place cannabis as a schedule 1 controlled substance. This recommendation was contingent upon studies held to determine if the use of the plant produces “severe psychological or physical dependence.”
President Nixon appointed the National Commission on Marihuana and Drug Abuse to provide recommendations concerning how to treat the use of marijuana. On March 22, 1972, the commission chairman, Raymond P. Shafer, presented a report to Congress and the public titled “Marihuana a Signal of Misunderstanding.” This report favored the end of marijuana prohibition and instead adopting other methods to discourage its use. This would result in the decriminalization of marijuana. These recommendations were opposed by Congress.
Marijuana Becoming Mainstream
Fast forward to 1996 and California voters passed Proposition 215 titled the “Compassionate Use Act” which legalized medical cannabis for patient’s based on a physician’s recommendation.
Today 24 states and the District of Columbia allow recreational use of marijuana with 40 states allowing it for medical use. Today only four states completely prohibit the use of marijuana.
What is Cannabis?
Cannabis is a complex plant. According to the US Food and Drug Administration, Cannabis is a plant with over 80 different naturally occurring compounds called “cannabinoids.” The most popular components include cannabidiol (CBD) and tetrahydrocannabinol (THC). THC can produce a range of psychoactive effects, including euphoria, relaxation, altered sensory perception as well as anxiety and paranoia.
Food and Drug Administration Approach
The FDA has approved the use of cannabis in limited circumstances. Epidiolex contains a purified form of cannabidiol (CBD) for the treatment of seizures associated with Lennox-Gastaut syndrome or Dravet syndrome in patients 2 years of age or older. The agency also approved Marinol and Syndros to alleviate nausea caused by chemotherapy and treatment of weight loss associated with AIDS patients. Marinol and Syndros include the active ingredient dronabinol which is similar to THC. The FDA also approved Cesmet which contains the active ingredient nabilone which is a chemical structure similar to THC to treat nausea associated with chemotherapy.
The current federal prohibition makes it difficult to study marijuana and its potential efficacy for other ailments. The Department of Health and Human Services concluded in a report dated August 29, 2023, that marijuana has some medical benefits and should be reclassified from schedule 1 to a schedule 3 drug. Examples of schedule 3 drugs include ketamine, anabolic steroids and buprenorphine used to treat opioid addiction. President Biden began the process with the FDA and Department of Justice to reclassify marijuana. The DOJ published specific recommendations on May 16, 2024.
Reclassification Efforts
On December 18th, 2025, President Trump published Executive Order 14370 titled “Increasing Medical Marijuana and Cannabidiol Research.” This order states that many Americans are dealing with chronic pain that might be alleviated with the use of marijuana, however the prohibition makes it difficult to validate this assertion. This Order specifically states, “the Attorney General shall take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III of the CSA in the most expeditious manner in accordance with Federal Law.”
Potential Consequences
Lifting the federal prohibition on Marijuana would create chaos with current drug free workplace policies. The American with Disabilities Act and State Acts, such as California Fair Employment and Housing Act explicitly state employers are not required to condone or accommodate the use of class 1 illicit controlled substances. This has allowed employers to impose a strict zero tolerance policy on the use of marijuana and consequences when someone tests positive for the drug.
Congress published a paper on December 22, 2025, titled, “Legal Consequences of Rescheduling Marijuana.” It states that a reclassification from class 1 to class 3 will not automatically lift the federal prohibition. It will not bring the state-legal medical or recreational marijuana industry into compliance with federal controlled substances law. Rescheduling marijuana to class 3 states that marijuana has accepted medical uses and benefits. This reclassification will allow the FDA to study and determine if marijuana should be prescribed by a physician.
Marijuana and Workers’ Compensation
The use of marijuana to treat a workers’ compensation injury has been a controversial topic for many years. Advocates for use point to the benefits in avoiding addictive opioid medication, stating no one has ever died from a marijuana overdose. Those that oppose argue that since we have no scientific peer reviewed criteria on its efficacy and use, once marijuana is provided on a claim, how is it stopped.
Currently six states require employers and carriers to reimburse an injured worker for their use of marijuana to treat a workers’ compensation injury. They are Connecticut, Minnesota, New Hampshire, New Jersey, New Mexico and New York. New Mexico was one of the first States to require reimbursement because of an appellate court decision in the case of Vialpondo v Ben’s Automotive. The New Mexico Supreme Cout denied a Petition for Writ of Certiorari resulting in this case becoming precedent. New Mexico has gone so far as to establish a fee schedule for the reimbursement of marijuana capping the annual amount.
Conclusion
Some say matters of this nature are resolved by the court of public opinion. If this is true, the medicinal and recreational use of marijuana is here to stay. Only 4 States currently prohibit its use. The remaining States agree that marijuana, in some form, has benefits. The reclassification, began by President Biden and continued by President Trump, may pave the way for physicians to prescribe its use, including for the treatment of a work-related injury.
Alta Claims & Insurance Services provides consulting, auditing and training for the national workers’ compensation industry.
Contact me at eddy@altaclaimsservices.com to learn more or visit our website at https://betterwithalta.com.