Ottawa wants to reduce medical cannabis reimbursement for veterans

The Budget 2025 The federal government's actions are making the Canadian ecosystem uncomfortable. legal cannabis.

Presented to the House of Commons on November 4, this budget outlines a radical plan to cut federal spending by $60 billion over five years. A central element of this initiative is a proposal to adjust benefits related to medical marijuana for Veterans Affairs Canada and the GRC, to save money 4.4 billion dollars between 2025 and 2029.

According to this proposal, the reimbursement cap for legally authorized medical cannabis would shift from $8.50 per $ to $6.00 per $ per gram, while maintaining the current daily limit of three grams. The federal government claims this measure reflects current retail prices and preserves patients' rights, but it has already sparked strong reactions from suppliers to the medical market.

A rapidly growing program now facing a major restructuring

The ACC reimbursement system has grown significantly since its inception. In 2011-2012, only 37 veterans were covered. In 2024-2025, this number exceeded 27,000 beneficiaries, with reimbursements reaching nearly 30,000 kilograms of cannabis, for a total of nearly 245 million dollars over the year. Since 2011, more than 143 million grams have been reimbursed, which represents more than’one billion dollars public spending.

The current reimbursement framework dates back to a policy change in 2016, which capped both the price and quantity covered by the federal program. To be eligible, veterans must provide a medical document issued by a healthcare professional and register with a federally licensed vendor under the Health Canada's Medical Cannabis Program.

If Parliament rejects the 2025 budget at the end of the month, the minority Liberal government could fall, potentially triggering an early election. By then, uncertainty will loom over the future structure of one of Canada's largest publicly funded cannabis programs.

Industry voices warn of consequences for patients and producers

As Ottawa emphasizes budget restrictions, businesses operating in the’canadian cannabis industry to emphasize that the proposed reductions come at a difficult time for a sector that continues to face high taxation, regulatory complexity, and persistent competition from the illicit market.

The leaders of the main medical producers, including Aurora Cannabis and Organigram, claim that the government has not only neglected opportunities to support the sector, but has also introduced changes without consulting the industry.

«We are disappointed that the federal government proposed these changes without consulting the cannabis industry or medical cannabis companies like Aurora,» said Miguel Martin, CEO of Aurora, warning that lower reimbursement rates could «disrupt continuity of care, clinical monitoring, and even push patients towards riskier alternatives.».

In a statement, an Aurora spokesperson added that «cannabis remains the only medication subject to excise duties,» calling the lack of excise duty reform a missed opportunity to align policy with patient needs.

The CEO of’Organigram, Beena Goldenberg, issued a similar critique: «The federal government missed an opportunity to recognize the legal cannabis sector as a key contributor to the Canadian economy and include it in this vision.» She emphasized that without reform, Canada risked losing its first-mover advantage in a global market projected to reach $140 billion.

A sector seeking recognition in a context of political uncertainty

Industry leaders say that The legal cannabis sector in Canada a generate substantial economic value, contributing approximately 16 billion dollars to GDP and supporting more 227,000 jobs since legalization. They also highlight consumption trends: 35% of Canadians have reportedly used cannabis in the past six months, and more than half support updating regulations to boost competitiveness.

For companies specializing in the medical segment, the proposed reduction in reimbursement could reshape business models. Organigram reported $606,000 in medical cannabis revenue for Q3 2025, while Aurora posted $27.9 million in Canadian medical sales for Q2 2026, figures that are likely to be affected if the Department of Veterans Affairs adjusts its spending.