U.S. federal health officials have opened a narrow new path for certain consumer hemp products under a handful of Medicare test programs, allowing participating health groups to provide them to some patients.
The new guidance, which appears aimed mainly at non-intoxicating hemp-derived CBD products, comes from the Centers for Medicare & Medicaid Services (CMS), the U.S. agency that runs Medicare and Medicaid. It applies only to a few limited federal programs in which CMS tests new ways of organizing and paying for care.
Narrow scope
The guidance lets certain participating health care organizations talk with eligible patients about qualifying hemp products and, if they choose, provide those products under set rules that do not treat these products as approved drugs or as ordinary medical products covered by Medicare.
For the U.S. hemp sector, the guidance is notable because a major federal health agency has now defined a limited category of hemp products that may be provided in certain health care settings. But the policy does not settle the wider regulatory questions around CBD in foods, supplements and general wellness products.
Product limits
CMS says eligible products must be legal under federal law and also legal in the state and local jurisdiction where they are offered. The products must come from lawful hemp sources and must be tested by third parties for strength, heavy metals, pesticides, solvents and microbes.
The guidance excludes inhaled products, oral products with more than 3 milligrams of THC per serving, and products containing synthetic cannabinoids. CMS also said the guidance does not override the federal Controlled Substances Act.
No coverage
Participating organizations may provide eligible hemp products worth up to $500 per year for each eligible beneficiary, but CMS says Medicare will not reimburse those costs. Patients also are not supposed to file Medicare claims for the products.
CMS said the policy can start April 1, 2026, for two of the test programs, and is scheduled to start Jan. 1, 2027, for the third program. Organizations that use it must first send CMS a plan and then file reports every three months.