Medical marijuana health insurance has long been viewed by cannabis businesses and patient advocates as a breakthrough that could reshape the industry. A recent proposed change to Medicare reimbursement regulations offered a brief spark of attention but delivered little for those hoping for broader coverage.
While the revision would allow coverage for a limited range of hemp products, it would not include CBD.
Talks of government-backed health plans covering CBD treatments picked up last week after Bloomberg reported that the Centers for Medicare and Medicaid Services was weighing whether certain older adults might qualify for CBD care beyond the single FDA-approved prescription option.
Such a move could have provided a lifeline to the struggling hemp economy, valued at $28.3 billion and facing major disruption once a federal ban on hemp-derived THC takes effect next year.
A shift in Medicare rules would also have marked a major change from policies rolled out in April 2025. Those guidelines explicitly barred marijuana products from some Medicare plans since they are federally illegal.
The Bloomberg report traced the policy discussion to Howard Kessler, a prominent CBD advocate with ties to President Trump’s Mar-a-Lago club. Kessler’s Commonwealth Project produced a video, shared by Trump on Truth Social, highlighting CBD as a potential therapy for seniors. Kessler reportedly met with HHS Secretary Robert F. Kennedy Jr., sparking speculation that Medicare might eventually cover CBD.
However, CMS’s latest proposal, published in the Federal Register, indicates that CBD is unlikely to qualify for coverage under Medicare. The draft states that any marijuana products deemed illegal under federal or state law, including regulations from the FDA, cannot be reimbursed.
Under these rules, only specific hemp-based products such as hemp seed oil, hulled hemp seeds, and hemp seed protein powder might be eligible for limited coverage.
The FDA has consistently said that current rules for foods and dietary supplements do not apply to CBD because it has never been cleared as a food additive. That stance has limited where CBD can appear on store shelves and has created uncertainty for businesses that invested heavily in the compound.
Complicating matters further is the recent legislation signed by Trump banning hemp-derived THC. The law narrows the definition of hemp, effectively limiting CBD products to 0.4 mg of THC per package. Industry groups say the law would make much of the current hemp market illegal once the rules take effect in 2026.
Currently, the only CBD medicine approved by federal regulators is Epidiolex, which remains available only with a prescription.
The wider marijuana industry, including firms like SNDL Inc. (NASDAQ: SNDL), will be hoping that federal laws gradually shift and respond to the current realities characterized by the widespread adoption of medical marijuana treatments by vast sections of the U.S. population.
About CNW420
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive SMS alerts from CNW, text CANNABIS to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CannabisNewsWire.com
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: https://www.CannabisNewsWire.com/Disclaimer
CannabisNewsWire
Denver, CO
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com
CannabisNewsWire is powered by IBN
