CMS is piloting a new program that permits some clinicians to offer certain hemp-derived products to Medicare patients as part of their care plans.
The new Substance Access Beneficiary Engagement Incentive is part of CMS’ Innovation Center model-testing framework, designed to evaluate whether hemp-derived products can improve patient outcomes when integrated into coordinated, clinician-led care plans.
The initiative operates under the 2018 Agriculture Improvement Act’s hemp provisions and aligns with an executive order President Donald Trump signed in December, supporting hemp innovation. The move does not legalize or authorize any drug that is otherwise prohibited under federal drug law.
Five things to know:
1. The option is only available to physicians and Medicare beneficiaries participating in the ACO REACH Model and the Enhancing Oncology Model. In 2027, the incentive will expand to the Long-Term Enhanced ACO Design Model.
2. Five ACOs in the REACH Model have submitted plans to begin offering the incentive as soon as April 1, pending CMS approval, with additional organizations able to join over time. Eligible patients may receive up to $500 per year in approved hemp-derived products if their clinician determines it is safe and appropriate. Participants must ensure products meet quality and safety standards, including third-party testing for potency and contaminants.
3. Clinicians may only offer federally legal hemp items containing no more than 0.3% delta-9 THC. Prohibited products include inhalable items (such as vapes), oral products containing more than 3 mg per serving of tetrohydrocannabinols, and products with cannabinoids not naturally produced by cannabis plants.
4. CMS will not pay for or reimburse providers for these products, and the initiative does not change Medicare coverage.
5. The agency will monitor implementation and evaluate whether the products deliver cost-effective improvements in patients’ symptoms and quality of life.
“CMS is committed to innovation that meets patients where they are while maintaining strong safeguards and clinical oversight,” said CMS Administrator Mehmet Oz, MD, in an April 1 release. “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.”
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