PA CLIENT ADVISORY: Pennsylvania Supreme Court to Address Whether CBD Oil is Covered by the Workers’ Compensation Act

Schmidt v. Schmidt
Supreme Court of Pennsylvania
No. 658 MAL 2023, 2024 Pa. LEXIS 633
Petition for Allowance of Appeal Granted on April 30, 2024

On April 30, 2024, the Supreme Court granted a Petition for Allowance of Appeal in Schmidt v. Schmidt. The Court will address the following specific questions:

(1) Do the terms “medical services” and “medicines and supplies” as used in Section 306(f.1), 77 P.S. § 531, of the Workers’ Compensation Act, include cannabinoid oil (CBD oil), specifically, as well as dietary supplements, generally, and products that may be purchased without a prescription from a healthcare provider?

(2) Do the cost containment regulations of the Workers’ Compensation Act apply to CBD oil?

(3) Does Section 306(f.1) of the Workers’ Compensation Act, 77 P.S. § 531, require employers/insurers to reimburse claimants, directly, for out-of-pocket expenses for “medical services” and “medicines and supplies,” and if so, are claimants obligated to submit supporting documentation, such as medical records or prescriptions, or specified forms, such as HCFA forms, before they may receive such reimbursement?

By way of background, the Commonwealth Court ruled in favor of reimbursement, affirming that CBD oil qualifies as both a “medicine” and “supply.” The Commonwealth Court found that reimbursement for CBD oil does not violate federal law and that the Claimant was not required to produce proper billing forms in order to receive reimbursement, as the Claimant is not a provider.

The Supreme Court’s determinations regarding the above-articulated questions will implicate carriers, not only in terms of costs to reimburse claimants, but also in terms of potential remedies to challenge the reasonableness and necessity of the over-the-counter dietary supplement.

Questions about this case can be directed to Cailey Farinaro at (610) 332-6008 or cfarinaro@tthlaw.com.