Last December, President Trump issued an executive order directing his administration to complete the work started by the Biden administration to reschedule marijuana. The news dominated cannabis headlines, but during the same press conference, officials also floated another interesting proposal: Medicare CBD coverage.
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Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services (CMS), announced an upcoming pilot program that could provide older Americans with free access to hemp products.
The program would “allow millions of Americans on Medicare to become eligible to receive CBD as early as April [2026]—and at no charge if their doctors recommend them,” Oz said at the time.
After the announcement, questions emerged about what the pilot would actually include. Early details suggest it may be more limited than initial headlines implied.
When asked about the program immediately after the December announcement, a CMS official pointed GreenState to an agency web page discussing the new Long-term Enhanced ACO Design (LEAD) Model.
The web page indicates that a limited number of health care groups, known as Accountable Care Organizations (ACOs), may consult on and potentially offer “eligible hemp products” to patients as part of an internal wellness program, similar to someone receiving a free heart rate monitor to incentivize healthy behavior. The ACO would have to pay for the hemp products themselves, and only in states where they are legal. The information does not specify what would make a hemp product “eligible” for inclusion.
CMS representatives did not immediately respond to follow-up questions. The LEAD model is not set to launch until January 2027, pushing back on Oz’s April target. However, there may have been more developments since December.
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In a podcast appearance last week, Jared Stanley, co-founder of the CBD brand Charlotte’s Web, which would have a business interest in expanded hemp access, called his remarks “speculative” but claimed the pilot’s rules were finalized “a couple of weeks ago” and that he expects an update soon to meet an April launch. He did not cite a source.
A White House official pushed back on Stanley’s assertion, telling GreenState via email that, “unless officially announced by the Administration, any discussion about proposed policymaking is baseless speculation.”
Stanley did not immediately respond to a request for comment.
Whether the program will begin in April is still up in the air, as are the particulars. Still, CMS materials suggest that some form of CBD-related coverage is in the works. If implemented, it could expand access for older Americans who use hemp-derived products for issues such as sleep or chronic pain, though the majority of these products are not FDA-approved to treat those conditions.
