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New FDA Enforcement Memo Clears Way For Hemp CBD Product Coverage Under New Medicare Plan

The Food and Drug Administration (FDA) has issued guidance making clear that it does not intend to interfere with implementation of a new Trump administration initiative to cover up to $500 worth of hemp-derived products each year for eligible Medicare patients.

FDA Commissioner Marty Makary wrote in a two-page memo on Wednesday that the agency “does not intend to enforce” certain sections of the Federal Food, Drug, and Cosmetic Act “with respect to an orally administered, hemp-derived CBD product solely on the basis that it contains CBD,” provided that it meets certain requirements.

In particular, in order to avoid enforcement of laws that deem a drug misbranded if its label lacks adequate directions for use and that require premarket approval for new drugs, CBD products under the new FDA guidance must meet the following conditions:

be manufactured, marketed, and labeled in a manner that would be consistent with the dietary supplement framework, including bearing a supplement facts panel and structure/function claims, not be contaminated, not be packaged or labeled in a manner that would be attractive to or marketed for children, and be provided to a beneficiary through a program of medical items or services payable under Title XVIII

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