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Federal Health Agency Moves To Allow CBD Coverage Under Medicare, As Promoted In Video Trump Posted

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A federal health agency wants to soon allow health insurance coverage for CBD under some Medicare programs.

The policy change has been unfolding for about a month from US Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. President Donald Trump shared a video over the summer after meeting with the head of an organization behind it. claimed the therapeutic potential of the cannabinoid. That video specifically called for Medicare coverage for seniors who want to use CBD as an alternative treatment.

The Centers for Medicare and Medicaid Services (CMS), under HHS, will publish a notice in the Federal Register on Friday about “marketing and communications, drug coverage, enrollment processes, special needs plans and other programming areas” for insurance programs it oversees. One of these changes concerns the cannabidiol coating.

CMS earlier implemented the 2026 final rule in April specifically stipulating that marijuana, as well as CBD derived from federal law hemp, are ineligible For coverage of the Medicare Advantage program and other services, the agency is revising that policy.

The proposed 2027 rule would change the regulation, which currently states that “cannabis products” cannot be covered. The new policy would “prevent coverage of cannabis products that are illegal under applicable state or federal law, including the Food, Drug, and Cosmetic Act.”

Because hemp and its derivatives like CBD are federally legal, the change suggests that patients in states where these products are legal can make valid insurance claims to pay for alternative treatment options, as long as the product is federally legal.

That said, recent changes to federal hemp law that will take effect next year—and a growing push by states to limit the sale of consumable cannabinoids—could significantly limit the types of products that patients can access. The way the law is written will allow limited concentrations of THC, where most growers and manufacturers say the idea of ​​a split for CBD is unfeasible. And for companies that market non-intoxicating products, this could spell doom, or at the very least force them to take on the significant additional cost of extracting CBD isolates in order to avoid running afoul of the law.

CMS he said In the filing to be published this week, “Hemp and hemp-derived cannabis products that meet the current 2018 definition are not federally controlled substances until November 11, 2026, and those that meet the amended definition after November 12, 2026, are not federally controlled substances after that date.”

“If such products comply with all other applicable federal laws, including the definition of hemp and the applicable provisions of the Food, Drug, and Cosmetic Act (FFDCA), they are not illegal under federal law,” he said.

The revised language examines eligibility for coverage of legal cannabis products at the state and federal level, but the agency specifically stated that the rule would allow Medicare Advantage to offer “hemp seed, hemp seed protein powder, and hemp seed oil,” given that the Food and Drug Administration (FDA) has already deemed the materials safe by the RAS (Generally, the RAS has approved a review).

The CMS policy change regarding cannabidiol was detailed in a Bloomberg brief reviewthe news organization reported, the document suggested an early version of the plan could focus on oncology and palliative care for the elderly, though it’s unclear to what extent the report is based on the latest Federal Register release, which it did not cite.

But the proposed rule is also taking about a month for Kennedy — the HHS secretary who previously approved granting access to cannabis and psychedelics for therapeutic purposes — to discuss the issue with Commonwealth Project CEO Howard Kessler, according to Bloomberg.

Kessler’s organization produced a Trump-promoted Truth Social video in late September promoting the health benefits of cannabis, suggesting that CBD coverage under Medicare would be “the most important senior health initiative of the century.”

“It’s time to educate physicians on the endocannabinoid system, provide Medicare coverage for CBD, and provide millions of seniors with the care they deserve,” he said.

The video Trump posted also featured a Fox News clip describing the economic benefits of legalizing medical marijuana, saying that “$64 billion would be saved annually if cannabis were fully integrated into the health care system.”

The Commonwealth Project also participated in the stalled hearings on the marijuana deregulation process initiated by the Biden administration. He filed a comment in the federal filing arguing the “historic” proposal “provides greater, but not complete, certainty for seniors, researchers and physicians to participate in research or health care pilot projects exploring the benefits and distribution of medical cannabis.”

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Michigan cannabis industry appeals 24% wholesale tax as job cuts loom

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December 30, 2025

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as reported by Crain’s in DetroitMichigan’s cannabis industry is ramping up its legal battle over the 24% wholesale tax that will take effect on January 1st. The Michigan Cannabis Industry Association (MICIA) filed an appeal in the state appeals court on Tuesday, challenging the decision of Court of Claims Judge Sima Patel, who denied the group’s request to block the tax.

MICIA spokeswoman Rose Tantraphol told Crain’s that she “doesn’t think the Claims Tribunal made the right call” and that the case is “an exceptionally strong case on the merits.” The association says the wholesale tax violates the 2018 voter-approved cannabis law, the Michigan Marijuana Regulation and Taxation Act (MRTMA), and “we will not back down from fighting for the will of the people in court,” it said.

A tax passed by lawmakers in late October to fund road repairs is already making waves in the state’s cannabis market. Ann Arbor-based C3 Industries is closing its 35,000-square-foot growing facility in Webberville, cutting 62 jobs, according to a state Workforce Adjustment and Retraining notice. CEO Ankur Rungta told Crain’s that the business “cannot operate the Michigan production facility profitably with the new wholesale tax.”

Marquette-based Higher Love, which runs ten dispensaries along with growing and processing operations, announced it will lay off nearly 30 percent of its workforce, citing tax reasons, though the exact number of workers affected is unclear.

MICIA’s legal challenge argues that the Legislature lacked the supermajority needed to change the voter-approved law and may have sidestepped the rules by introducing a toll road funding bill without a public hearing. Judge Patel disagreed that the tax violated the law, but left the door open for further review, and that courts should consider whether the 24% wholesale tax undermines the intent of the MRTMA’s original 10% retail excise tax, which aims to keep legal marijuana affordable and curb the illegal market.

With the new tax set to go into effect within days, MICIA is asking the Court of Appeal for a quick ruling to stop the wholesale levy before it takes effect.










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Florida Marijuana Campaign Sues State Over Invalidation Of 71,000 Signatures With Turn-In Deadline Weeks Away

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8 hours ago

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December 30, 2025

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A Florida campaign seeking to put marijuana legalization on the state’s 2026 ballot has filed a new lawsuit against state officials, alleging they improperly directed the cancellation of about 71,000 signatures as the filing deadline quickly approaches.

Smart & Safe Florida has fought several legal battles this cycle to ensure its initiative can be put on the ballot.

The latest lawsuit, filed Monday in Leon County courts, alleges that Secretary of State Cord Byrd (R) ordered county election officials to invalidate about 42,000 signatures from so-called “inactive” voters and about 29,000 signatures collected by out-of-state petitioners.

This comes after another court upheld a previous decision to strike with around 200,000 signatures, which the state said were invalid because the petition did not contain the full text of the proposed initiative. The campaign challenged the legal interpretation, but declined to appeal the decision, confident it had collected enough signatures to settle the dispute.

Now, about a month away from submitting 880,062 valid signatures by the Feb. 1 deadline, Smart & Safe Florida points out that additional cancellations could jeopardize their chances of getting on the ballot. Currently, the state has validated 675,307 signatures.

“Time is of the essence,” the new lawsuit says. according to Florida News Service. “Florida’s Secretary of State has issued two illegal directives that, unless stopped, will invalidate citizen initiative petitions signed by more than 70,000 registered voters.”

As for “inactive” voters, the term refers to those who are registered but marked as undeliverable, resulting in their addresses being considered unconfirmed. This group can remain unregistered if they do not vote in two consecutive general elections.

“The absurd result of the Secretary’s directive is that ‘active’ voters can vote for the proposed amendment, but cannot count their petitions to vote to place the proposed amendment on the ballot,” the lawsuit states.

The out-of-state petitioner lawsuit, on the other hand, is about enforcement of a law passed earlier this year that prohibits the collection of signatures by non-Florida residents. Among the legal challenges, a federal court ordered its enforcement blocked for about two months before another judge lifted that order.

Smart & Safe Florida is arguing that the signatures collected during the mandate window should not be invalidated because they were obtained legally while the law was not in effect.

Meanwhile, earlier this month, Florida’s attorney general asked the state Supreme Court to review the constitutionality of the legalization initiative. The court granted the request and set a schedule for state officials and the cannabis campaign to file briefs next month.

The campaign said last month it had collected more than a million signatures to put the cannabis measure on the ballot, but it’s not. He has sued state Supreme Court officials for delaying the certification processarguing that the review of ballot content and summary should have gone ahead several months ago when the initial signature threshold was reached. The state then he agreed to proceed with the processing.

Florida Gov. Ron DeSantis (R) campaigned hard against an earlier version of the proposed legislation, which won a majority of voters last year but fell short of the 60 percent threshold needed to pass a constitutional amendment. Former Attorney General Ashley Moody (R) unsuccessfully challenged the earlier initiative in court.

In March, two Democratic members of Congress representing Florida asked the federal government to investigate What they described as an “illegal diversion” of millions in state Medicaid funds through a group with ties to Gov. Ron DeSantis (R). The money was used to fight a popular ballot initiative the governor vehemently opposed that would have legalized adult marijuana.

The lawmakers’ letter alleges that a $10 million donation from a state legislative settlement was misappropriated to the Hope Florida Foundation, which later sent the money to two political nonprofits, and sent $8.5 million to the anti-Amendment 3 campaign.

The governor said this in February The latest measure to legalize marijuana is in “big trouble” with the state Supreme CourtHe announced that it will be blocked from going before the voters next year.

“There are a lot of different views on marijuana,” DeSantis said. “It shouldn’t be in our Constitution. If you feel strongly about it, you have a legislative election. Bring back the candidates you think will be able to deliver what you think about it.”

“But when you put these things in the Constitution, and I think, I mean, the way they were written, there’s all kinds of things going on here. I think it’s going to have a lot of trouble getting passed by the Florida Supreme Court,” he said.

the last the initiative It was introduced to the secretary of state just months after initial versions failed in the November 2024 election, despite President Donald Trump’s endorsement.

The revised version of Smart & Safe Florida is expected to be successful in 2026. The campaign — which received tens of millions of dollars from cannabis industry players in the last election cycle, notably from multi-state operator Trulieve — introduced some changes in the new version that address criticisms of opponents of the 2024 push.

For example, it now specifically states that “smoking and vaping marijuana in any public place is prohibited.” Another section states that the legislature should adopt rules governing the “time, place and public manner of consuming marijuana.”

Last year, the governor accurately predicted this The campaign’s 2024 cannabis measure would survive a legal challenge From the state attorney general. It’s not entirely clear why he thinks this version will face a different outcome.

Although there is uncertainty about how the state’s highest court will navigate the measure, a poll released in February It showed the overwhelming support of a bipartisan voter for reform— 67% of Florida voters support legalization, including 82% of Democrats, 66% of independents and 55% of Republicans.

—
It’s Marijuana Time tracking hundreds of cannabis, psychedelic and drug policy bills in state legislatures and Congress this year. Patreon supporters by pledging at least $25/month, you’ll get access to our interactive maps, charts, and audio calendars so you never miss a development.

Learn more about our marijuana bill tracking and become a Patreon supporter to gain access
—

In hindsight, a recent survey by a Trump-linked research firm found that Nearly 9 in 10 Florida voters say they should have the right to decide whether to legalize marijuana in the state

Meanwhile, a pro-legalization GOP state lawmaker has just introduced a bill to change state law code that the public use of marijuana is prohibited.

Rep. Alex Andrade (R), the sponsor, said earlier this year Passing cannabis reform is a way for the Republican Party to get more votes from young people

Separately, there are medical marijuana officials in Florida actively expunging the records of patients and caregivers with drug-related criminal records. The policy is part of the sweeping budget legislation that DeSantis signed into law earlier this year. The aforementioned provisions address the State Department of Health (DOH). void the records of medical marijuana patients and caregivers if convicted of drug offenses, or pleaded guilty or no contest.

Mike Latimer’s photo.

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Happy Holidays!

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1 day ago

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December 29, 2025

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Next publication on January 5, 2026






We are officially closing for the holidays. MMJDaily will be back on January 5, 2026, a little more rested.

Thank you for staying with us until 2025. Go enjoy your vacation, eat too much, sleep too little and try not to set anything on fire. See you next year!

© Mirthe Walpot | MMJDaily.com



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