The Growing Pains of a Growing Industry
With many states legalizing both medical and recreational use, the fairly new cannabis industry is experiencing rapid expansion and professionalization. And this expansion covers a wide range of businesses, including plant-touching and ancillary businesses, from cultivation and dispensaries to packaging and accessories. As these businesses mature within the industry and look to retain their talent, employee benefits are becoming crucial to success and combating high turnover rates. Direct Primary Care (DPC) can offer a cost-effective and valuable healthcare solution that addresses the unique challenges and needs of this sector.
The Challenge: Providing Affordable, Accessible Care
As cannabis businesses look to provide affordable and accessible care, many of them run into legal roadblocks. The American Bar Association notes that insurance rates for the cannabis industry are not yet regulated by states due to the newness of the industry and the lack of federal legalization. For the states that have legalized cannabis, their coverage requirements are specific and complex, and coverage might be difficult to find in those areas. Many cannabis businesses are also small to midsize and face limited insurance options. The result? Cannabis businesses are wrestling with spotty coverage, high premiums, and dissatisfied employees who have to choose between expensive care or no care at all. In the long term, these businesses are threatened with high absenteeism, constant turnover, and an increase in preventable health issues in their employee population.
What Is Direct Primary Care?
Direct Primary Care returns to a more traditional health care model, operating like a subscription. Just like you pay a flat fee for unlimited access to a streaming or music service, employees pay a flat monthly fee for unlimited access to a primary care provider. This model removes multiple barriers that plague insurance-based models and improves access for the user. With no copays or insurance barriers and flexible and personalized care that can be in-person or virtual, DPC opens up a whole new world for cannabis businesses looking for competitive care options for their employees. Additionally, DPC can work independently or alongside an Individual Coverage Health Reimbursement Arrangement (ICHRA), existing insurance, or other health benefit options, enabling businesses to tailor a solution that works best for their needs.
Why DPC Makes Sense for Cannabis Employers
Direct Primary Care addresses many of the unique pain points cannabis employers face. To combat high insurance rates and uncontrollable costs, Direct Primary Care’s membership-based model offers predictability with regular monthly fees and fewer surprise claims. Direct Primary Care is also compliance-friendly, as its lack of reliance on traditional insurance automatically avoids some of the legal complications that can arise for cannabis companies. Direct Primary Care is also a win for employees. In an industry where effective and valuable benefits have been hard to come by, employees will appreciate relationship-based care that is easy, flexible, and transparent about cost and services available. Regular preventive care keeps employees healthier and happier. boosting morale, reducing time off, and increasing retention.
Pairing DPC with Other Benefits
While Direct Primary Care is effective on its own, it can also be paired with an ICHRA or Health Savings Account (HSA) to expand care offerings for employees, with additional benefits for employers:
- The ICHRA avoids many of the complications of traditional plans, as employees buy their coverage directly from the individual marketplace. As a result, carriers don’t have to underwrite the business, and employees are empowered to choose plans that meet their needs. The ICHRA itself is ACA-compliant and offers clear guidance on fiduciary responsibilities. It also allows employers to set reimbursement amounts by employee class to control costs, while the reimbursements themselves go through standard payroll systems, bypassing banking issues.
- The One Big Beautiful Bill brought an important expansion of HSAs; starting January 1, 2026, membership fees for DPC arrangements will be considered HSA-eligible expenses. Additionally, participating in a DPC arrangement will no longer disqualify employees from also contributing to an HSA. Employees can now take advantage of the triple tax savings of an HSA while also using those same funds to cover DPC membership fees and increase their care options while capitalizing on savings.
While these arrangements might seem complicated on the payment side, Accresa’s innovative technology supports employers in managing these programs seamlessly. In our all-in-one platform, employers can reduce time spent on billing, decrease the administrative burden of juggling multiple systems, and enjoy our automated process that allows for multiple forms of payment.
The Smart Next Step for Cannabis Businesses
Cannabis businesses looking to last should look no further. DPC isn’t just about healthcare; it’s about helping employers build a sustainable business that attracts and maintains top talent. DPC has the potential to drastically improve current conditions for both the employer and the employee. Employers benefit from controlled costs, risk mitigation, and a more satisfied and productive workforce. Employees enjoy flexible and accessible care, cost transparency, and improved health and morale. Cannabis businesses win all around with this innovative solution.
Learn more about how Ameriflex and Accresa collaborate to help cannabis employers tailor a benefits package that fits their needs and meets compliance regulations.
