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Is Medicinal Cannabis Covered by Medicare or PBS in Australia? (2026)
Medicinal cannabis is not covered by Medicare or the PBS in Australia — but there are legitimate ways to reduce costs including DVA coverage, patient support programs, and bulk-billing telehealth consultations. A complete guide to medicinal cannabis costs and funding in 2026.
The cost of medicinal cannabis is one of the most frequent questions Australian patients ask — and the answer is more nuanced than a simple yes or no. Medicinal cannabis is not listed on the Pharmaceutical Benefits Scheme (PBS) and is not directly covered by Medicare. However, this does not mean there is no financial assistance available.
The direct answer — PBS and Medicare coverage
Pharmaceutical Benefits Scheme (PBS):
Medicinal cannabis products are not listed on the PBS. To be listed on the PBS, a medicine must go through a full Health Technology Assessment (HTA) via the Pharmaceutical Benefits Advisory Committee (PBAC). No cannabis product has successfully completed this process as of 2026 due to the evidence requirements for PBS listing (large randomised controlled trials demonstrating cost-effectiveness against established comparators).
Medicare:
Medicare does not cover the cost of medicinal cannabis products themselves. Medicare is for medical services (GP visits, specialist consultations, diagnostics) — not pharmaceuticals.
What this means for you:
You pay the full retail price of medicinal cannabis products out of pocket. Australian medicinal cannabis prices range from approximately $8–$22 per gram for flower and $3–$12 per mL for oils, depending on product type, potency and brand.
What Medicare DOES cover in the cannabis process
While Medicare doesn’t cover the cannabis products, it does cover many of the services surrounding your access:
- Bulk-billed GP consultations — your GP visit to discuss medicinal cannabis is Medicare-billable. Many GPs bulk-bill; some charge a gap fee
- Specialist consultations — referrals to pain specialists, psychiatrists, neurologists etc. who assess your condition are Medicare-rebatable
- Related investigations — blood tests, imaging and other diagnostic work related to your underlying condition are Medicare-covered
- Telehealth consultations — Medicare introduced telehealth MBS items; some telehealth GP services are bulk-billed or have low gaps
Several dedicated medicinal cannabis telehealth platforms (Alternaleaf, Polln, Tetra Health, Releaf Medical) offer bulk-billed or low-cost initial consultations specifically to reduce the access cost barrier, though the cannabis products themselves remain out-of-pocket.
DVA (Department of Veterans’ Affairs) coverage
Australian veterans with DVA Gold and White Cards have specific coverage for medicinal cannabis:
Gold Card: Covers medicinal cannabis where:
- A DVA-accepted prescriber recommends it as part of a treatment plan
- The condition is covered under Gold Card entitlements
- The product is TGA-approved or accessed via SAS-B
White Card: Coverage for service-related conditions accepted by DVA (PTSD, chronic pain, sleep disorders where these are service-related).
DVA coverage positions have expanded significantly in recent years. Contact DVA directly or work with your RSL advocate to confirm your current entitlements. See our cannabis for veterans guide for detailed DVA access information.
Private health insurance
Private health insurance in Australia generally does not cover medicinal cannabis products. Some extras policies cover certain complementary therapies, but cannabis products are excluded.
However, private health insurance may cover:
- Specialist consultations that lead to cannabis prescribing
- Some associated diagnostic costs
- In rare cases, allied health support around your cannabis therapy
Check your specific policy with your insurer — the landscape changes frequently.
Patient support programs from manufacturers
Several Australian medicinal cannabis manufacturers and distributors run patient support programs that provide subsidised or free access for eligible patients:
Compassionate access: Some producers offer compassionate access programs for patients who cannot afford standard pricing — particularly for paediatric patients or those with terminal conditions. Ask your prescriber or pharmacy about specific manufacturer programs.
Starter programs: Some platforms offer reduced-cost initial supplies to allow patients to trial products before committing to ongoing costs.
Generic/lower-cost Australian products: The domestic Australian cannabis production sector has grown substantially, and Australian-grown products are often significantly cheaper than imported GMP products. Your prescriber can consider domestic products where clinically appropriate.
What medicinal cannabis typically costs in Australia (2026)
| Product type | Typical monthly cost |
|---|---|
| CBD oil (low dose, 10mg/day) | $80–$200/month |
| CBD oil (moderate dose, 50mg/day) | $200–$500/month |
| THC/CBD balanced oil | $200–$400/month |
| Dried flower (low use, 5–10g/month) | $50–$200/month |
| Dried flower (regular, 20–30g/month) | $200–$500/month |
| Vaporiser cartridges | $150–$400/month |
| Initial consultation | $0–$150 (varies; many bulk-billed) |
| TGA application | No fee to patient |
| Ongoing prescription reviews | $0–$100 (varies) |
Prices have decreased substantially since 2018 as domestic production has expanded and import pathways have matured. Further price reductions are expected as more domestic producers enter the market.
Strategies for reducing medicinal cannabis costs
1. Ask for Australian-grown products:
Domestically produced cannabis is typically cheaper than imported products. Ask your prescriber specifically for Australian-grown flower or locally produced oil where clinically suitable.
2. Use telehealth platforms with bulk-billed consultations:
Platforms including Alternaleaf and some others offer bulk-billed consultations, eliminating the consultation cost entirely.
3. Optimise your dose:
Work with your prescriber to find the minimum effective dose. Medicinal cannabis response is not always linear — many patients achieve therapeutic benefit at lower doses than they initially assume.
4. Consider CBD-only if appropriate:
Pure CBD products are generally less regulated internationally and some compliant CBD-only products are available at lower price points. However, ensure any CBD product you use is TGA-approved or prescribed via proper channels.
5. DVA entitlements check:
If you are a veteran, an RSL benefits check is free and may identify coverage you didn’t know you had.
6. Manufacturer rebate programs:
Ask your pharmacy specifically whether any manufacturer programs apply to your prescribed product — these exist but are not always proactively offered.
Will medicinal cannabis ever be on the PBS?
This is a question many patients and advocates ask. For PBS listing to occur, a product must demonstrate:
- Efficacy in randomised controlled trials meeting PBAC evidence standards
- Cost-effectiveness versus alternative treatments
- Manufacturer submission and full PBAC review process
Several Australian cannabis companies are actively conducting or participating in RCTs that could eventually generate the evidence required. The timeline for PBS listing of any specific cannabis product is uncertain — likely 5+ years minimum — but the pathway is not impossible.
In the interim, advocates including Medicinal Cannabis Industry Australia (MCIA) have lobbied for interim funding pathways, improved PBS comparability assessments, and DVA coverage expansion.
Frequently asked questions — medicinal cannabis Medicare and PBS
Is medicinal cannabis covered by Medicare in Australia?
No. Medicare covers medical services (consultations, diagnostics) but not the cannabis products themselves. Your GP or specialist consultation is Medicare-rebatable; the cannabis prescription you receive is paid out of pocket.
Why isn’t cannabis on the PBS?
PBS listing requires a full PBAC health technology assessment demonstrating efficacy, safety and cost-effectiveness via randomised controlled trial evidence meeting specific standards. The cannabis evidence base, while growing, has not yet met PBAC’s requirements for any specific product. This is expected to evolve over the next 5–10 years.
How much does medicinal cannabis cost per month in Australia?
Highly variable depending on what you need. A patient using CBD oil for anxiety might spend $100–$200/month. A chronic pain patient using flower and oil might spend $300–$600/month. Prices have decreased significantly since 2018.
Does private health cover medicinal cannabis?
No. Australian private health insurance does not cover cannabis products. Some policies may cover related specialist consultations or allied health but not the cannabis itself.
Is there any financial assistance for low-income patients?
DVA coverage for eligible veterans, manufacturer compassionate access programs, and bulk-billed telehealth consultations reduce but do not eliminate costs for low-income patients. There is no universal subsidy equivalent to PBS concession pricing for medicinal cannabis in Australia as of 2026.
What can I claim on tax for medicinal cannabis?
Medical expenses (including prescribed medications) are not currently deductible on personal income tax in Australia. Consult a tax accountant if you have specific questions about your situation — the rules can change and business-related medical costs have different treatment.