The Parliamentary Budget Officer (PBO) said it was requested by a lawmaker to examine the cost profile of the Budget 2025 measure to lower the maximum reimbursement rate for medical cannabis under the Cannabis for Medical Purposes program from $8.50 per gram to $6 per gram -- as part of the Comprehensive Expenditure Reduction exercise for Veterans Affairs Canada.
Among highlights cited by the PBO following the examination, it said this measure will affect Canadian Armed Forces veterans and Royal Canadian Mounted Police (RCMP) members by decreasing the maximum annual amount that most eligible veterans or members can claim by $2,737.50, from $9,307.50 to $6,570, noted PBO.
From the latest usage statistics under the program, a veteran using the average amount per day and receiving the average reimbursement rate will incur an additional $2,668 each year due to the reduced reimbursement rate, the PBO said.
The government's expected savings from the measure are $4.4 billion over the four-year period spanning 2026-27 to 2029-30, the PBO noted. "While annual cash reductions related to the policy measure range from $90 million to $120 million, the government records the fiscal savings for Budget purposes on an accrual basis using an accelerated amortization treatment to reflect the reduction of the accrued benefit obligation within the relevant program," it said.