Note

Medical Cannabis Benefits Savings: A Note on the Government's Estimate

Jun 16, 2026

The Parliamentary Budget Officer was requested by MP Blake Richards (Airdrie-Cochrane) 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.

Highlights

This measure will affect Canadian Armed Forces veterans and 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. 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.
This note explains key accounting calculations that underlie the Government’s expected savings of $4.4B over the 4-year period spanning 2026-27 to 2029-30. While annual cash reductions related to the policy measure range from $90M to $120M, 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.