Federal officials have finalized a rule that will allow coverage of some hemp products as specialized, non-primarily health-related benefits through Medicare Advantage (MA) plans.
In a filing set to be published in the Federal Register on Monday, the Centers for Medicare & Medicaid Services (CMS) is clarifying that certain cannabis products that are legal under both state and federal laws are eligible to be reimbursed under the Special Supplemental Benefits for the Chronically Ill (SSBCI) program.
Under a previous update to the program adopted in April 2025, CMS determined that all cannabis products are not eligible for coverage under certain health plans for chronically ill patients. But the new rule only prohibits coverage of “cannabis products that are illegal under applicable State or Federal law.”
The development is separate from a program CMS launched this week to allow Medicare coverage of hemp-derived CBD and THC products that meet certain requirements, with this one instead focusing on allowing MA organizations to offer hulled hemp seed, hemp seed protein powder and hemp seed oil as covered benefits.
Coverage under new policy is contingent on the Food and Drug Administration’s (FDA) determination that the products are generally recognized as safe (GRAS) and that
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