While cannabis is allowed both medically and recreationally in the state, it remains a Schedule I drug at the federal level. Healthcare facilities that are Medicare and/or Medicaid providers receive accreditation from the Centers for Medicare and Medicaid Services (CMS) and are required generally to comply with local, state and federal laws in order to continue receiving reimbursements. Consequently, many healthcare facilities have adopted policies prohibiting cannabis on their grounds out of a perceived risk of losing federal funding if they were to allow it.

This fear is unfounded, as the Medicare and Medicaid regulations do not address the use of medical cannabis, and CMS states that it is not aware of a provider that has specifically lost funding or been penalized for permitting the use of medical cannabis. Furthermore, CMS states it would not cite healthcare facilities for allowing medical cannabis use unless the US Department of Justice (US DOJ, declares its intent or acts to interfere with state medical cannabis laws.

Ryan's Law passed the California legislature unanimously in 2021 and was signed into law by Governor Gavin Newsom. As a result, terminally-ill Californians have been enjoying this new right without issue since January 1, 2022. A second bill further easing access to cannabis in hospitals for terminally-ill California patients was signed into law this year and takes effect beginning in 2023.