Legal Primer

Position of EO Care's Services and Products

EO Care operates within a complex but navigable legal framework that allows for nationwide delivery of clinical cannabis guidance through its digital health platform while providing access to federally legal hemp-derived products.

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Digital Health Guidance Services

• Nationwide Legal Status: EO Care's clinical guidance services are legally permissible in all 50 states. Massachusetts law explicitly recognizes "advising a qualifying patient about the risks and benefits of medical use of marijuana" as a legitimate component of healthcare practice.

• Legal Protection for Guidance: Medical professionals are legally protected when providing cannabis guidance, even in states where cannabis remains illegal. Multiple legal opinions, including from Foley Hoag attorneys, confirm that counseling on medical cannabis use does not violate federal law, as the only person at risk of federal prosecution would be the patient actually possessing cannabis.

• Digital Platform Advantage: As a technology and care platform rather than a "plant-touching" entity, EO Care doesn't require state marijuana licenses. This enables nationwide service delivery through their HIPAA-compliant digital health platform.

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Product Options

• Farm Bill Compliance: EO's hemp-derived Delta-9 THC products (containing ≤0.3% Delta-9 THC by dry weight) are federally legal under the 2018 Farm Bill and can be shipped directly to consumers in most states.

• State Law Options: In states with medical or recreational cannabis programs, patients can apply EO's guidance to locally available products acquired under state law.

• Optional for Employers: Products represent an entirely optional component of EO's service offering for employer programs. Employers can choose to offer only clinical guidance services while allowing employees to source products independently.

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Legal Precedents and Opinions

• Insurance Reimbursement: Multiple state appellate courts have ruled that reimbursement for medical cannabis does not violate federal law, establishing precedent that ancillary services like guidance are legally permissible.[1][2][3]

• Workers' Compensation Precedents: State courts have compelled workers' compensation insurance boards to pay for medical cannabis when deemed medically necessary for work-related injuries.[9][10][11]

• Medical Professional Services: Massachusetts law specifically permits healthcare providers to "advis[e] a qualifying patient about the risks and benefits of the medical use of marijuana," establishing a clear legal foundation for EO's guidance services.[4]

• Legal Counsel Opinion: Foley Hoag's legal opinion confirms that "nothing in state or federal law presents obstacles to" reimbursement for counseling on medical marijuana treatment.[5]

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Cannabis Rescheduling Outlook

• Current DEA Process: The DEA is currently holding final hearings on the recommended rescheduling of cannabis from Schedule I to Schedule III, with a decision expected in 2025. This follows FDA's recommendation for rescheduling based on accepted medical use and lower potential for abuse than Schedule I or II drugs.[6]

• Trump Administration Position: President Trump has publicly endorsed rescheduling cannabis to Schedule III, stating in September 2024: "We will continue to focus on research to unlock the medical uses of marijuana to a Schedule 3 drug."[7] This position aligns with his broader stance on ending "needless arrests and incarceratzions" for personal cannabis use.

• Key Cabinet Member Support: Dr. Mehmet Oz (CMS): As CMS Director, Dr. Oz has expressed interest in exploring medical cannabis for older adults as an alternative to conventional symptom management drugs. Under his leadership, CMS has already reached out to EO Care to discuss potential improvements to oncology care post-rescheduling.[8]

• Robert F. Kennedy Jr. (HHS): As Secretary of Health and Human Services, Kennedy Jr. is expected to continue the department's support for rescheduling, which was initiated under the previous administration. His appointment signals continuity in this policy direction.

• Impact of Rescheduling: If rescheduled to Schedule III, cannabis would be federally recognized as having medical value and would be an impetus to broader clinician involvement.

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Key Takeaway

All Americans can legally access EO Care's clinical cannabis guidance through their digital health platform, regardless of state residence. This guidance can then be applied using products obtained either under the federal Farm Bill (hemp-derived) or according to applicable state laws, providing a comprehensive, legally compliant solution for both individuals and employers nationwide. With cannabis rescheduling likely to proceed under the Trump administration, medical cannabis guidance will become an important component of health benefits.

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Sources

[1] Hager v. M&K Const., 247 A.3d 864 (2021) - The Supreme Court of New Jersey ruled that a worker's compensation insurer must cover medical marijuana, concluding that an insurer reimbursing claims for medical marijuana would not violate the Controlled Substances Act.

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[2] Appel v. GWC Warranty Corp., 291 A.3d 927 (Comm. Court 2023) - A Pennsylvania appeals court concluded that Pennsylvania's medical marijuana law requires insurers to reimburse patients for medical marijuana if reasonable and necessary for a work-related injury.

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[3] Appeal of Andrew Panaggio N.H. Comm. Appeals Bd, 174 N.H. 89 (2021) - The New Hampshire Supreme Court concluded that "the CSA does not make it illegal for an insurer to reimburse an employee for his or her purchase of medical marijuana."

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[4} Massachusetts General Laws chapter 94I, section 2 - Explicitly permits healthcare providers to "advis[e] a qualifying patient about the risks and benefits of the medical use of marijuana."

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[5] Foley Hoag legal memorandum dated August 7, 2023 - Provides analysis concluding that under both state and federal law, there are no obstacles to reimbursement for counseling regarding medical marijuana treatment.

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[6] Cannabis Regulations Primer, Updated January 29, 2025 - EO Care internal document detailing regulatory changes and outlook.

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[7] Trump's public statement on Twitter, September 8, 2024 - "As President, we will continue to focus on research to unlock the medical uses of marijuana to a Schedule 3 drug."

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[8] EO Care Intro January 2025 document - References CMS discussion with EO Care to discuss oncology care improvements post-rescheduling.

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[9] Memo re: Insurance Coverage and Medical Marijuana, August 7, 2023 - "Multiple state appellate courts have interpreted the CSA with respect to workers' compensation insurers, which are generally required by state law to cover medically necessary care received in response to a work-related injury. These courts have generally found that reimbursement of medical marijuana claims does not expose an insurer to liability under the CSA."

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[10] Hager v. M&K Construction, 247 A.3d 864 (2021) - The New Jersey Supreme Court ordered the workers' compensation board to reimburse an injured worker for medical marijuana, ruling that federal law did not preempt the state's medical marijuana law in this context.

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[11] Appeal of Andrew Panaggio, 174 N.H. 89 (2021) - The New Hampshire Supreme Court ruled that the state's workers' compensation board's denial of reimbursement for medical marijuana was incorrect, as the CSA does not prohibit insurers from reimbursing for legal medical marijuana purchases.

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