Medicare covers CBD without FDA approval and faces a lawsuit
By Celine Provini
Published on April 1, 2026.
The Centers for Medicare & Medicaid Services (CMS) has launched a pilot program that reimburses eligible beneficiaries for certain hemp-derived CBD products. This move comes amidst a lawsuit by a coalition of drug safety advocacy groups claiming that the program violates federal law. The plaintiffs argue that it bypasses the FDA’s drug approval process and treats them as validated pharmaceuticals without FDA approval. The pilot program allows participating health care organizations to furnish eligible Medicare beneficiaries with CBD products at no out-of-pocket cost. Each beneficiary can receive up to $500 annually in eligible hemp products through three CMS Innovation Center models. The cost is covered entirely by the participating organization, while CMS collects data on patient outcomes and product performance. If successful, the pilot program could expand access to additional CBD products for Medicare and Medicaid beneficiaries.
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