The Centers for Medicare & Medicaid Services (CMS) sent a press release this morning announcing the launch of a new pilot program that will allow certain participating healthcare organizations to furnish eligible hemp-derived products to patients under clinician supervision starting April 1.
The CMS says the new initiative, called the Substance Access Beneficiary Engagement Incentive, is not available to all Medicare beneficiaries. Instead, it applies within specific CMS Innovation Center models, including ACO REACH and the Enhancing Oncology Model, with the Long-Term Enhanced ACO Design model set to join in 2027. For the current performance period, CMS says five Accountable Care Organizations in ACO REACH have submitted implementation plans for review, with initial approved participants expected to begin offering the incentive on April 1.
Under the policy, participating organizations that elect the option and receive CMS approval may furnish up to $500 per year in eligible hemp-derived products for each qualifying beneficiary, subject to clinical determination and model requirements. CMS says the products must be federally legal, contain no more than 0.3% delta-9 THC, and meet additional restrictions. Inhalable products are excluded, as are orally administered products containing more than 3 milligrams per serving of tetrahydrocannabinols. Products containing cannabinoids not naturally produced, or not capable of being produced by the cannabis plant during cultivation, are also excluded.
“CMS is committed to innovation that meets patients where they are while maintaining strong safeguards and clinical oversight,” said CMS Administrator Dr. Mehmet Oz. “Under the President’s leadership, we’re expanding the tools available to improve patients’ health while generating important insights into how providers can use these tools safely and effectively in real-world care settings.”
According to CMS, the incentive must be delivered through a clinician-led care plan based on shared decision-making between a patient and a physician or other qualified clinician. That process must include a discussion of potential risks and benefits, a review of current medications, and follow-up planning.
“This new CMS initiative gives providers in certain models another tool – with necessary safeguards – to support their patients’ needs through consultation about whether possible use of hemp products could help improve symptoms,” said CMS Innovation Center Director Abe Sutton.
CMS says the policy does not change Medicare coverage rules, and the agency will not directly pay for or reimburse providers for the products furnished through the incentive. The agency also says it is not making claims about the therapeutic value of the products, but will monitor implementation and evaluate outcomes as the initiative moves forward.
