Proposal Allows Medicare Coverage for CBD
Summarize
The federal government is preparing to authorize health insurance coverage for cannabidiol (CBD) under specific Medicare programs, first asking for public comments. This is a major federal policy change toward hemp-derived therapeutics. The move comes about a month after Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. met with Howard Kessler, head of the Commonwealth Project, the organization behind a video promoted by President Donald Trump that urged Medicare to cover CBD as an alternative treatment for seniors. That video highlighted CBD’s therapeutic potential and framed such coverage as a crucial step for older adults.
The Centers for Medicare & Medicaid Services (CMS) is expected to publish a Federal Register notice proposing broad updates to regulations governing marketing, drug coverage, enrollment, and special needs plans. Among those revisions is a significant change to the current prohibition on cannabis products within Medicare Advantage and related programs. An earlier 2026 rule barred coverage for marijuana and CBD, even when derived from federally legal hemp. The new 2027 proposal would narrow that ban. Instead of excluding all “cannabis products,” CMS would restrict coverage only for substances that are illegal under federal or state law, including those prohibited by the Federal Food, Drug, and Cosmetic Act (FFDCA).
Because hemp and its derivatives, including CBD, are federally legal, the updated policy could enable Medicare Advantage plans in compliant states to reimburse patients for CBD products that meet federal standards. However, upcoming amendments to federal hemp laws will be implemented in November 2026 and will sharply limit allowable THC concentrations. Many hemp producers warn that these restrictions could make it nearly impossible to manufacture compliant full-spectrum or broad-spectrum CBD products, forcing companies to rely on costly CBD isolates or exit the market entirely. States’ increasing restrictions on consumable cannabinoids could further limit patient access.
In its notice, CMS clarifies that hemp and hemp-derived products that meet the 2018 Farm Bill definition remain non-controlled substances until November 11, 2026, and that those meeting the amended post-2026 definition will remain lawful. As long as products meet Farm Bill and FFDCA requirements and restrictions, they would be eligible for coverage. CMS also notes that Medicare Advantage plans may offer hulled hemp seed, hemp seed oil, and hemp seed protein powder, all of which the FDA considers generally recognized as safe.
Per Bloomberg, the changes will probably be phased in. The first phase would allow for CBD insurance coverage in oncology and palliative care settings. These changes are in alignment with Kennedy’s public support for therapeutic cannabis and psychedelics. President Trump and Secretary Kennedy consider this change a health and economic policy.
This is a proposed rule to revise Medicare Advantage (Part C), Medicare Prescription Drug Benefit (Part D), and Medicare cost plan regulations for CBD. The Kessler video says,
“It’s time to educate doctors on the endocannabinoid system, provide Medicare coverage for CBD, and give millions of seniors the support they deserve.”
This is an important revision because various surveys have found that up to 20% of seniors use CBD for multiple reasons. As a natural product that consumers find helpful, it makes sense to allow insurance coverage for CBD. It is much less expensive than many prescription drugs and enables seniors to access the products they need for wellness and when they need them.
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