Reasonable and Necessary" Test for Federal Workers' Comp

Federal authorities have determined that medical marijuana is not a reimbursable expense under the Longshore and Harbor Workers’ Compensation Act.
Because cannabis remains a Schedule I controlled substance, it cannot be classified as a legally “reasonable and necessary” medical treatment for workers’ comp purposes.
This decision reinforces the federal supremacy of the Controlled Substances Act over conflicting state medical marijuana programs.
Consequently, employers and carriers operating under federal statutes are protected from mandated reimbursement for medical cannabis.

The Fair Work Commission upheld a worker’s dismissal after medical evidence confirmed an inability to perform duties due to psychological incapacity.
This ruling clarifies that employers can legally terminate staff when permanent impairment prevents them from fulfilling inherent role requirements.
For workers’ compensation stakeholders, the case highlights the critical intersection between long-term disability claims and employer rights to productivity.
The decision reinforces the employer’s position when no alternative duties are available.

Montana businesses will see an average 8% reduction in workers’ compensation premium rates starting July 1, 2026.
This 13th consecutive annual decrease, approved by Commissioner of Securities and Insurance James Brown, is attributed to improved workplace safety and fewer injury claims statewide.
Since 2011, combined legislative reforms and employer safety initiatives have led to a cumulative rate drop of approximately 57%.
These lower costs aim to enhance Montana’s business climate while maintaining necessary medical and wage benefits for injured employees.