High Tide Subsidiary Targets Supplier Role in Medicare CBD Pilot

CALGARY – High Tide Inc. has announced that its U.S.-based CBD subsidiary, NuLeaf Naturals, started negotiations with healthcare institutions to supply products for a new federal pilot program that lets certain Medicare beneficiaries receive up to $500 worth of eligible hemp-derived CBD products per year free of charge.

The pilot, formally known as the Substance Access Beneficiary Engagement Incentive (BEI) launched April 1 under the Centers for Medicare and Medicaid Services (CMS) Innovation Center. It covers participants in the ACO REACH Model and the Enhancing Oncology Model (EOM) right away, with the Long-term Enhanced ACO Design (LEAD) Model joining in January 2027. Accountable care organizations and oncology practices that join must submit detailed plans to CMS, including product specifications, dosing guidelines, beneficiary eligibility rules, and safety measures. Physicians must document conversations with patients about benefits, risks, and drug interactions before products are provided. Medicare itself does not reimburse the cost; participating organizations cover it as part of their model obligations.

NuLeaf Naturals, founded in Denver in 2014, operates cGMP-certified and FDA-registered facilities and is pursuing USDA Organic certification. Its lineup of THC-free and broad-spectrum CBD formats matches the program’s rules, which limit products to federally compliant hemp items with no more than 0.3% delta-9 THC and bar inhalables and synthetic cannabinoids. The company has also joined the National Compassionate Care Council, a group focused on evidence-based cannabinoid access.

High Tide CEO Raj Grover called the pilot “a historic moment” for patient access, noting that NuLeaf’s quality systems position it to serve as a supplier. The firm has already reached out to participating ACOs and oncology programs.

The initiative traces back to a December 2025 executive order that advanced Cannabis rescheduling and directed agencies to explore broader CBD access. CMS Administrator Dr. Mehmet Oz has framed the effort as a way to gather real-world data on symptom control in structured care settings.

Other hemp suppliers have moved quickly to position themselves in the program. Charlotte’s Web has aligned itself as a launch partner focused on senior oncology patients, Cornbread Hemp secured an exclusive contract with a national group purchasing organization serving 68,000 provider locations, and Vlasic Labs confirmed that its CBD product line meets the program’s qualification standards.

From a business standpoint, the pilot’s reach is narrow. It applies only to beneficiaries aligned with specific Innovation Center models, not the full Medicare population of roughly 65 million. Providers must weigh up the expense against potential savings in overall care costs, and success here ultimately comes down to documented clinical outcomes, which CMS will track through quarterly reports.

For the broader CBD sector, the program marks the first formal entry of hemp products into federally supported Medicare models, creating a testing ground that could influence future coverage decisions if data prove favorable. High Tide’s existing U.S. direct-to-consumer base and manufacturing credentials give it a practical edge, though selection as a supplier is not assured and remains subject to each organization’s approved plans.