Federal Health Agency Moves To Allow CBD Coverage Under Medicare, As Promoted In Video Trump Posted

OG article by Kyle Jaeger

November 27, 2025

A federal health agency plans to authorize coverage for CBD under certain Medicare programs. The Centers for Medicare & Medicaid Services (CMS), under the U.S. Department of Health and Human Services (HHS), will publish a notice in the Federal Register on Friday detailing changes to marketing, drug coverage, enrollment, special needs plans, and other areas. This revises a 2026 rule that barred coverage for marijuana and CBD derived from federally legal hemp in Medicare Advantage and other services. The new 2027 proposed rule amends regulations to exclude coverage only for cannabis products illegal under state or federal law, including the Federal Food, Drug, and Cosmetic Act. Since hemp-derived CBD is federally legal through November 11, 2026, and remains non-controlled afterward if meeting amended definitions, patients in states where such products are legal could claim coverage for alternative treatments, provided compliance with all federal laws. However, upcoming federal hemp law changes effective November 12, 2026, with low THC limits, may restrict accessible products, potentially making CBD carve-outs infeasible for most growers and manufacturers, who might face higher costs for isolates. CMS notes that hemp products complying with laws are not illegal, and the rule allows coverage for hulled hemp seeds, hemp seed protein powder, and hemp seed oil, deemed generally recognized as safe by the FDA. The policy shift follows HHS Secretary Robert F. Kennedy Jr.'s meeting with Howard Kessler, CEO of the Commonwealth Project, which produced a video President Donald Trump shared on Truth Social in late September. That video touted CBD's therapeutic potential for seniors, calling for Medicare coverage as a key health initiative, and highlighted economic benefits like $64 billion in annual savings from cannabis integration into healthcare. The project also commented on stalled marijuana rescheduling hearings, advocating for certainty in medical cannabis research and pilots for seniors, researchers, and physicians.