Medicinal Cannabis
The Department of Veterans Affairs (DVA) has introduced a tighter framework for funding medicinal cannabis, with new rules taking effect on 16 February 2026. The framework restricts who can prescribe, what products are funded, and at what dose, after DVA identified prescribing practices that were placing veterans at risk. It is a clear example of a payer using funding rules to drive safer prescribing.
Why DVA changed its approach
DVA has said it became aware of concerning prescribing practices that prioritised profit over patient wellbeing and placed veterans at harm. Its response aligns with the broader direction set by the Australian Health Practitioner Regulation Agency and the TGA, both of which have moved to tighten oversight of medicinal cannabis. The framework uses the DVA position as a funder to set conditions on what it will pay for.
What the framework restricts
The framework sets specific limits. DVA will only accept applications and prescriptions from doctors who hold specialist registration with AHPRA. Funding is limited to dried herb medicinal cannabis products for vaporisation using a TGA-approved medical device. The THC concentration must be 25 percent or less, total dried herb is capped at 2 grams per day or less across all products, and a maximum of three products may be prescribed per client. When a client changes prescriber, in-person consultation and specialist registration requirements apply.
Transition arrangements
DVA has provided a transition period for existing patients. Eligible clients who had a DVA-funded prescription dispensed between 16 February 2025 and 15 February 2026 have until 31 August 2026 to work with their doctors to make any necessary changes in line with the new framework. Clients who received a prescription but did not have it dispensed within that 12-month window are not grandfathered, and grandfathering cannot be used to exceed the new product and dosage limits for the first time.
What this means for the personal injury sector
While the framework is specific to DVA, it is a useful signal for workers compensation and CTP insurers. It shows how a payer can translate safety concerns into concrete funding conditions: specialist prescriber requirements, product and dose caps, and defined transition arrangements. Claims teams reviewing cannabis-related treatment can look to the DVA model as a reference point for what evidence-based, risk-managed funding conditions can look like.
Key Takeaways
- The tighter DVA medicinal cannabis framework took effect on 16 February 2026.
- Only doctors with specialist AHPRA registration can prescribe DVA-funded medicinal cannabis.
- Funding is limited to dried herb for vaporisation, with THC at 25 percent or less and 2 grams per day or less.
- Existing patients have until 31 August 2026 to transition under grandfathering arrangements.
Frequently Asked Questions
When did the DVA medicinal cannabis framework take effect?
The new framework took effect on 16 February 2026 for eligible Veteran Card holders.
Who can prescribe DVA-funded medicinal cannabis?
Only doctors who hold specialist registration with AHPRA.
What is the transition period for existing patients?
Eligible clients with a DVA-funded prescription dispensed between 16 February 2025 and 15 February 2026 have until 31 August 2026 to align with the new framework.
Primary source: Department of Veterans Affairs medicinal cannabis framework, February 2026.
