Pilot Program and Rule for CBD Medicare Coverage Finalized
Summarize
In December 2025, President Trump signed an executive order directing the attorney general to move marijuana from Schedule I to Schedule III of the Controlled Substances Act. At the same time, the Centers for Medicare & Medicaid Services (CMS) announced it was working on a new rule to allow Medicare coverage for cannabidiol (CBD), with the first step being to create a pilot program. The pilot program would allow people older enrolled in federal health insurance plans to access marijuana and CBD through their doctors, with the cost covered by insurance. Dr. Mehmet Oz, CMS administrator, hopes to launch the program in April 2026.
The co-founder of Charlotte’s Web, Jared Stanley, said CMS has internally finalized rules for CBD coverage in the pilot program and will announce them soon. It is hoped this pilot will help the FDA develop clearer regulatory guidance while rewarding responsible manufacturers, with both actions protecting consumers.
Questions Concerning Coverage
There are still some questions about how coverage will work. A CMS spokesperson pointed to an existing program framework allowing healthcare providers to discuss hemp product use with patients through a Beneficiary Engagement Incentive model. Under this arrangement, providers—not CMS—would initially bear product costs, and strict safeguards would prevent abuse. Participation would also be limited to states where hemp-derived products are legal. As a result, the full scope of federal payment coverage remains unclear.
However, Dr. Oz has previously suggested that millions of Medicare beneficiaries, especially those aged 65 and older, could gain access to CBD products at no cost if recommended by physicians. Medicare Advantage insurers, which cover roughly 34 million Americans, are reportedly considering CBD coverage as well. Although specific eligibility criteria have not been finalized, officials have indicated that individuals with serious long-term health needs may be among those considered for the program.
Supporting Research and Helping People
The new initiative does not legalize marijuana. It focuses on supporting research and on giving patients access to products that offer health benefits. Oz argued that reclassifying marijuana to Schedule III would facilitate scientific study and correct what he described as the mistaken classification of cannabis as having no medical value. He referred to FDA-approved cannabis-based medications and to growing interest in cannabinoids for supportive care and overall quality of life, especially among older adults.
If the pilot program is successful, it is expected to expand. Dr. Oz believes people should have access to products that bring relief in many cases.
In December 2020, he said,
“We’re finding a way to allow Medicare beneficiaries to get access to some of these products. And so, within Medicare, we have the ability, for the first time ever…to allow doctors to recommend hemp-derived CBD for patients…”
He sincerely believes this pilot program will spur new research by providing a large user base for evaluation.
This could be a major step towards normalizing the CBD market, which has been kept in turmoil by changing state laws and a lack of FDA guidance. The program will only operate in states where hemp-derived products are legal, but it is a start.
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