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The Haze of Medical Marijuana and Benefits
International Foundation of Employee Benefit Plans [IFEBP]Link to more items from this source
Sept. 1, 2015

"[A] health plan doesn't have to cover medical marijuana. What's not clear is whether a health plan even can cover it. If coverage is provided, the benefit would be taxable. [A recent articles notes] that VEBAs are tax-exempt trusts, and there's an argument that if a VEBA covers the cost of medical marijuana, it could lose its tax exemption. However, they write, if less than 3% of the VEBA's total expenditures are for nonpermitted purposes, its tax-exempt status should be safe."

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