A new Medicare pilot that would allow some older adults to receive certain hemp products at no cost is facing a court challenge. A coalition of anti-cannabis groups led by Smart Approaches to Marijuana (SAM) filed a federal lawsuit against the Trump administration in an attempt to block implementation of the pilot, set to take effect as early as today.
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The Substance Access Beneficiary Engagement Incentive (BEI) program allows participating Accountable Care Organizations (ACOs) to consult with patients and, if approved, distribute approved hemp products. Medicare does not reimburse the products’ cost; instead, expenses are offset by broader health care savings and distribution agreements with manufacturers.
The plaintiffs argue the Centers for Medicare and Medicaid Services (CMS) cannot “sanction the possession and use of illegal and dangerous Schedule I substances by Medicare patients without clear congressional authorization.”
However, representatives from CMS previously told GreenState that approved hemp products comply with the 2018 Farm Bill and local law.
Smart Approaches to Marijuana CEO Kevin A. Sabet said in a statement sent to GreenState that the group questions the safety of hemp products and the CMS’s apparent endorsement of them.
“We filed this lawsuit because the federal government is proposing to fund the use of drugs that lack FDA approval—drugs that have real, proven risks and are linked to everything from dementia to heart disease,” Sabet explained. “CMS has a mandate to promote public health; this program will absolutely degrade it.”
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Sasha Kalcheff-Korn, executive director of the cannabinoid education and advocacy nonprofit Realm of Caring, pushed back on Sabet’s claims, telling GreenState the lawsuit is a “misguided attempt to stall progress.”
“Efforts to block Medicare reimbursement for CBD therapies only delay a program designed to expand access for those who need it most,” Kalcheff-Korn said. “Rather than creating unnecessary legal roadblocks, the focus should be on responsibly implementing and refining this initiative to ensure safe, science-driven access for Medicare beneficiaries.”
Representatives for CMS did not immediately respond to requests for comment.
A federal judge already denied a temporary restraining order brought by the plaintiffs, who sought to immediately block the BEI. A broader hearing on the matter has been set for April 20, coincidentally a non-official cannabis holiday. It’s unclear how the Trump administration will respond to the litigation, which names Health Secretary Robert F. Kennedy Jr. and CMS Administrator Mehmet Oz among the defendants.
