A coalition of anti-marijuana groups and a cannabis-focused biopharmaceutical corporation are asking a federal appeals court to overturn a lawsuit challenging a new Trump administration initiative. Cover up to $500 of hemp-derived products annually for eligible Medicare patients.
Last month, Judge Trevor N. McFadden The Centers for Medicare and Medicaid Services (CMS) rejected the challenge to the program implemented It focuses largely on CBD, but also allows a certain amount of THC in its products.
He ruled that prohibitionist groups and activists, led by Smart Approaches to Marijuana (SAM), as well as MMJ International Holdings and its subsidiary, a cannabis-based biopharmaceutical corporation, “have no standing to bring this case.”
The plaintiffs now appeal to the US Court of Appeals for the District of Columbia Circuit.
“Notice is hereby given that Plaintiffs Intelligent Approaches to Marijuana, Cannabis Industry Victim Education Litigants, Hillsborough County Anti-Drug Alliance, MMJ International Holdings, Inc., MMJ Biopharma Cultivation, Inc. and MMJ Biopharma Labs, Inc. are filing an appeal in the United States Circuit Court of Appeals for May 22, 2026 in favor of Plaintiffs,” reads the brief filed Friday.
SAM CEO Kevin Sabet said in a press release, “This fight is far from over, and we will not stand idly by as long as CMS allows non-FDA-approved products to be given to seniors.”
“This program puts CMS in bed with Big Tobacco and Big Weed, and puts older Americans at risk,” he argued. “CMS is mandated to promote public health, and this program would degrade it. Not only would this move put the elderly at risk, it would also send the wrong message to the American public about the safety of these products, which have been found to have numerous negative side effects.”
In April, lawyers Section of Health and Human Services. Robert F. Kennedy Jr. and CMS Director Mehmet Oz presented the summary arguing that Anti-cannabis organizations filed lawsuit against Medicare hemp coverage policy they have no value to bring the case.
Outside of the CMS hemp program challenge, SAM and MMJ were presented separately The lawsuits challenge the Trump administration’s move to federally regulate marijuana.
Beyond advocacy organizations and MMJ, the CMS hemp case involves individual plaintiffs, including anti-marijuana attorney David Evans, who says he had a Substance Access Beneficiary Engagement Incentive (BEI) lawsuit as a Medicare recipient.
McFadden previously denied the plaintiffs’ request for a temporary restraining order to stop the program from running on April 1st.
Notably, the government’s motion to dismiss the case says it was prepared in part by Matthew Zorn, an HHS attorney, before he took the federal job. litigated numerous cases against government agencies on behalf of plaintiffs seeking marijuana and drug policy reform..
The CMS initiative comes after President Donald Trump signed an executive order in December calling on the attorney general to finalize a federal marijuana redistricting rule, now underway, that also includes “access improvement” components for full-spectrum CBD products.
Under the program, inhalable preparations are not allowed, and products cannot contain more than 0.3 percent delta-9 THC by dry weight and a total of 3 milligrams of THC per serving.
The THC limit could potentially change if the law the president signed late last year goes into effect as planned in November. Such a policy would strictly limit the types of cannabis products currently allowed under the 2018 Farm Bill signed by Trump during his first term, specifically banning hemp derivatives with a total of 0.4 milligrams of THC per container.
This week, the White House asked Congress to take action amend the proposed ban to maintain legal access to hemp-derived full-spectrum CBD products.
In a summary of the CMS hemp case, the federal agency stated that “CMS does not pay for hemp products under the BEI.”
“Participating providers supply eligible products at their own cost, subject to an annual limit of $500 per beneficiary. BEI operates within a shared savings framework that defines the underlying model. If a provider’s investment in beneficiary engagement reduces the beneficiary’s total cost of care, it shares in the savings generated by the provider and CMS. If it does not absorb new, if the provider does not absorb new. BEI is essentially entitled to certain interventions. It is a provider decision that allows one to reduce downstream claims.
Meanwhile, the White House Office of Management and Budget recently held a series of meetings a Food and Drug Administration (FDA) CBD product enforcement policy.
The FDA also issued guidance making it clear that it does not intend to interfere Establish a Medicare coverage plan for hemp-derived products.
CMS finalized a rule that will be adopted separately Coverage of certain hemp products, primarily as specialized health-related benefits, through Medicare Advantage the plans
read it filing appeal the dismissal of the lawsuit challenging the Medicare hemp program below:
user photo Nanny Kimzy.