How Novus Integrated Cannabis In Employer-Sponsored Health Plans

How Novus Integrated Cannabis In Employer-Sponsored Health Plans

Benefiting From Legislation, Technology, High Taxation Which Drives Consumer Demand


MIAMI, FL – Lexis – September 20, 2022, – Novus Acquisition and Development, Corp. (OTC Markets: (NDEV), through its wholly-owned subsidiary WCIG Insurance Services, Inc. Operates as a hybrid health insurance carrier and, the nation’s first health carrier offering cannabis that is included in health plans for recreational and medicinal users. Today demonstrates how the regulatory landscape changes, high taxes, and technology will supply cannabis health benefits for the American Workforce.



An estimated 12% of Americans consume cannabis and investors need to be well informed about the regulatory and technological changes that are poignant to their investment.  These changes are favoring Novus’ first-mover advantage and how it strengthens new relationships with mid-tier and major Health Carriers including Big Pharma.

For six years Novus’ first-mover advantage has built a network of cannabis verticals that perform as our Provider Network.  Our foundation in health insurance has allowed us to adjust and adopt changes in the cannabis marketplace. For instance, alliances with health carriers and brokerage wholesalers that white label our plans in Group Sales and our social conscience in helping with Opioid Epidemic and Veterans’ medicinal necessities.


Significant Legislation Changes


  • Compassionate Care Act: Where employees are protected from termination for using medical cannabis, this has led the way for Employer-Sponsored Health Plans that include cannabis.



  • Opioid Settlement Framework: Adjudicated settlement with Major Carriers and Big Pharma in $45 billion compensatory damages, rehabilitation, and opioid diversion programs. Novus Cannabis MedPlans can put them compliant with State Attorney Generals.


  • The Veterans Cannabis Use for Safe Healing Act: Prohibits the Department of Veterans Affairs (VA) from denying VA benefits due to participation in a state-approved cannabis program(s). Allows the VA to prescribe medical cannabis to veterans and create a safe harbor for financial institutions and other businesses.


  • Push Against Vertical Integration: State governments are looking towards proposing licensing restrictions so businesses can’t vertically integrate to produce, transport, and sell their own products. This will open up more opportunities to expand our Provider Network.


  • Emergence of Third-Party Online Ordering: As smaller operations look toward online retail with online platforms it offers an advantage to be more reactive to industry trends and maintain an inventory that consists of popular and varietal product segments for our policyholders.


  • Barrier of Entry In the Weed Market: From government regulations to technological advancements, small and slow, and now antiquated licensing fundamentals many businesses find themselves facing more competition and growing expenses.


  • Inflation: Now comes inflation that causes even more of an impediment to consumers who become policyholders that see our benefits packages to cut household budgets.




  • Rising Recreational Cannabis Taxation: Especially in California, taxation is as high as 37% prompting recreational users in getting their state cannabis cards and joining our health plan to get the medicinal tax rate which is 50% less. Beginning January 1, 2023, cannabis retailers will be responsible for collecting and paying the cannabis excise tax (15% of gross sales) to the California Department of Tax and Fee Administration (CDTFA). We are confident this will help grow our Provider Network of dispensaries and policyholders.


  • Future Tax on Potency-based. Similar to alcohol taxes, except instead of taxing drinks with a higher percentage of alcohol at higher rates (i.e., liquor is taxed at a higher rate than beer), the tax is based on the THC level of the marijuana product.


InsurTech Technology


  • Ecosystem of InsurTech Platforms: These platforms are a disruptive and innovative technology that sells direct to close to 110 million American workers who have Employer-Sponsored Health Plans. These platforms sell D2C health policies on an ala carte basis as opposed to one-size-fits-all health plans. In addition, gives autonomy to the policyholder.
  • Embedded Insurance: As funding for these technologies dries up, many are looking towards Novus’ Embedded Insurance as a revenue share with speed to market with our white label solution. This increases our EBITDA by close to 20% by reducing the outlay of agent commissions.



Legislation and Taxation will most definitely drive up the price of cannabis and the consumer will have to absorb these increases. Novus’s business model is aiding in making cannabis more affordable through Employer-Sponsored Health Plans which the American Workforce is demanding to have cannabis as part of their benefits.

There are four characteristics in the aforementioned that has given success to the scope of our business model dramatically, in the areas of:


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