CMS Finalizes Rule for Medicare CBD Coverage Pilot

WASHINGTON – The Centers for Medicare & Medicaid Services (CMS) has finalized regulations enabling a pilot program for federal health insurance coverage of hemp-derived CBD products, according to a recent statement from an executive at Charlotte’s Web Holdings, Inc.

Jared Stanley, co-founder of Charlotte’s Web, told industry stakeholders during a webinar this week that the rulemaking, led by the CMS Innovation Center, was completed internally. Charlotte’s Web will supply science-backed CBD products to senior cancer patients under the new Medicare and Medicaid pilot program. The company plans to deliver these through a secure online healthcare portal starting early in 2026, with physician guidance and oversight. This arrangement broadens the firm’s presence in medical channels and incorporates advisory board input along with nonprofit collaboration to ensure evidence-based, affordable CBD support for seniors.

The effort builds on earlier announcements tied to policy shifts in late 2025. In December, CMS Administrator Mehmet Oz described plans for the pilot to allow eligible Medicare beneficiaries to obtain physician-recommended CBD at no out-of-pocket cost, with coverage projected to begin as early as April 2026. Patients could qualify for reimbursement of up to $500 annually in qualifying hemp-derived products, subject to safety and quality standards.

This development follows a December 2025 executive order from President Trump directing Cannabis rescheduling and related health policy adjustments, which Oz linked to expanding access to non-addictive options for symptom management in chronic conditions common among older adults. The pilot aims to gather data on outcomes, costs, and potential broader applications for issues like pain, sleep, and anxiety.

No official CMS press release or Federal Register document has yet detailed the finalized rule’s full text or exact implementation timeline, leaving some specifics (precise eligibility criteria, approved product formulations, and participating plans) awaiting further disclosure. The agency has historically excluded Cannabis-derived items from coverage under Medicare and Medicaid, making this targeted exception for hemp-derived CBD a notable departure.

For the hemp and broader Cannabis sector, the move signals growing federal recognition of certain cannabinoid applications in supportive care, particularly for high-need populations like seniors with cancer. It may encourage additional research and product standardization while highlighting tensions with separate congressional actions that have tightened hemp regulations in other areas.

As the pilot advances, Highly Capitalized Network-HCN will watch for enrollment data, patient results, and any signals on scaling the model beyond its initial scope. This step represents measured progress in integrating hemp-derived therapeutics into established federal health programs, though its long-term impact depends on forthcoming operational details and sustained evidence of value.