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.”