Medicare's Potential Coverage of Hemp Products Excludes CBD

The prospect of Medicare covering CBD treatments has stirred considerable interest in the cannabis industry, but recent developments suggest that such coverage remains unlikely. A proposed amendment to Medicare reimbursement rules was announced, which might include a limited range of hemp-derived products, yet CBD is notably absent from this list. The proposal, if finalized, would only cover products like hulled hemp seed, hemp seed protein powder, and hemp seed oil, leaving CBD treatments without Medicare support

Speculation about Medicare's potential coverage of CBD gained traction following a Bloomberg report indicating that the Centers for Medicare & Medicaid Services was contemplating such a move for seniors. This came after Howard Kessler, a prominent financier and CBD advocate, met with Health and Human Services Secretary Robert F. Kennedy Jr. Kessler's Commonwealth Project, which supports CBD as a treatment for seniors, further fueled these discussions by producing a video that was shared by former President Trump on Truth Social

Despite the discussions, the proposal published in the Federal Register clearly states that cannabis products illegal under state or federal law, including those regulated by the U.S. Food and Drug Administration, would not be eligible for Medicare coverage. This regulatory stance aligns with Medicare policies unveiled in April 2025, which exclude cannabis products due to their illegal status under federal law. The FDA has maintained that current food and supplement regulations do not appropriately cover CBD, which is not approved as a food additive

The broader context for this development is the impending ban on hemp-derived THC products, set to take effect in November 2026. This ban, signed into law by former President Trump, redefines hemp to exclude THC and outlaws CBD products containing more than 0.4 milligrams of THC per container. The hemp industry, valued at $28.3 billion annually, faces significant challenges due to this legislation, which could criminalize a large portion of its products

Currently, the only FDA-approved CBD-based pharmaceutical is Epidiolex, available by prescription only. The industry's hope for broader acceptance and integration into health insurance plans remains stymied by federal regulations. While the proposed Medicare changes offer some support for hemp-derived products, the exclusion of CBD underscores the ongoing challenges faced by the cannabis industry in achieving federal recognition and support