Novus Medical Group, a wholly owned subsidiary of Novus Acquisition & Development (OTC: NDEV), has taken a significant step in building its Novus MedPlan network of providers for the rapidly growing medical marijuana industry. Novus MedPlan is being developed as a distinctive cost savings program that will offer its members cost savings of up to 50% on a range of wellness products and services, including hemp and medical marijuana products and services that are often not covered by traditional insurance. The company’s recent Exclusive Provider Agreement with Nana’s Secret, LLC, represents an important milestone for the program, tapping a popular line of products in the process of providing coverage in all medical marijuana states.
Nana’s Secret, based in Washington state, formulates and produces an expanding list of government-compliant, cannabis-infused soft drinks and edibles that are already spreading from Washington to a number of states around the country via word-of-mouth. Founded by Cecelia Siverston, a long-time sufferer battling epileptic tremors and arthritic pain, the company offers a smokeless cannabis alternative for patients seeking longer-lasting relief from the pain and discomfort of diseases that would otherwise be treated with prescription medications. Siverston, who was disappointed with the quality and cost of medical marijuana products she found on the market, worked to develop a superior formula for soft drinks and other products. After much trial and error, she was finally able to produce sodas that she says allow her to now function as a “normal” person, and especially appreciates the fact that she no longer has to deal with the “terrible side effects” from the prescription drugs she had taken for over 30 years. She continues to donate some of the proceeds from sales to the National Epilepsy Foundation.
The medical marijuana (MMJ) industry has experienced impressive growth over the past several years, largely on the back of legislation that is opening up cannabis production and distribution for medical application. Pain management, an established multi-billion dollar global industry, has until recently been under the thumb of big pharma, dependent upon an unending stream of pills and patches, many of them addictive and with concerning side effects. Medical marijuana is being seen as a game-changer, a qualitatively new approach that is considered certain to grab market share, and right now there is no dominant player. The fragmented industry is ripe for a business model that can successfully consolidate, offering savings and efficiency to a hungry marketplace.
There are a number of different ways to grab part of the expanding MMJ pie, beyond retail consumables, although NDEV’s share price growth has been stand-out. Terra Tech Corporation (OTCQB: TRTC) makes hydroponic equipment for indoor growing. Vape Holdings (OTCQB: VAPE) produces and sells vaporization products. Hemp, Inc. (OTC: HEMP) provides information as well as physical products related to MMJ. And a number of companies are driving the development of MMJ pharmaceuticals.
Currently, the health insurance industry, including Medicare and Medicaid, is limited by federal laws that classify marijuana as a controlled substance. Evolving state laws are often in conflict with federal laws, leading to a refusal by many companies to cover hemp and medical marijuana. The result has been that patients seeking a viable alternative to prescription drugs can end up paying hundreds or thousands of dollars each month seeking MMJ solutions. The Novus MedPlan program is designed to more effectively address this demand, by offering products of dependable quality and with a substantial price break. In the case of their recent agreement, MedPlan members will receive an exclusive 30% cost savings on products from Nana’s Secret.
Novus says they plan to roll out their MedPlan benefit network offering this October in states that have medical marijuana legislation passed or on the ballot as of November 4, 2014. Patients are able to enroll early and are incentivized to do so with a “one month free” offer here: http://novusmedicalgroup.com/preenrollment.htm
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