Federal Program Begins Reimbursing Hemp CBD and THC, Prompting Immediate Lawsuit from Anti-Cannabis Groups

In a notable development for the U.S. cannabinoid landscape, the federal government has launched a limited reimbursement program for certain hemp-derived CBD and THC products, according to High Times. The Substance Access Beneficiary Engagement Incentive (BEI) quietly took effect on April 1, providing up to $500 per year in eligible hemp-based products for approved patients under specific care models. The program’s launch marks a rare instance of federal support for cannabinoid access, albeit under tightly regulated conditions and with strict product requirements

The program’s eligibility is confined to select models within the Centers for Medicare & Medicaid Services (CMS) Innovation Center, including ACO REACH, the Enhancing Oncology Model, and the Long-term Enhance ACO Design Model, with the latter set to begin in 2027. Covered products must be non-inhalable, hemp-derived, contain no more than 0.3% delta-9 THC, and be administered orally with a maximum of 3 milligrams of tetrahydrocannabinols per serving. Furthermore, products must be supplied directly by qualified physicians affiliated with participating organizations, rather than purchased at retail, and must comply with state and local laws

Almost immediately, the program faced fierce opposition from anti-cannabis advocacy groups. On March 31, Smart Approaches to Marijuana (SAM) and nine other organizations filed a lawsuit seeking to halt the initiative, arguing that CMS had bypassed required administrative procedures and overstepped its authority. The plaintiffs contend that allowing access to non-FDA-approved cannabinoid products via a federal health program is both legally and medically questionable. Kevin Sabet, CEO of SAM, stated, “What CMS is allowing are not real medicines but loosely regulated products sold at gas stations and convenience stores.”

Despite the lawsuit, the CMS program is far from a broad endorsement of cannabis. The initiative is highly structured, with requirements for third-party testing, compliance with state and federal regulations, and oversight from participating organizations. High Times notes that the policy is tied to a December executive order from the Trump administration on marijuana rescheduling and hemp-derived cannabinoid access, reflecting a cautious federal approach to integrating cannabinoids into healthcare. The program’s framework is designed to ensure safety and quality, with products subject to rigorous standards for potency and contaminants

The future of the program remains uncertain, as its scope could be affected by forthcoming changes to federal hemp laws, particularly those anticipated under the FY2026 Agriculture Appropriations Act. CMS has indicated that if hemp regulations change later this year, the definition of eligible products will be updated accordingly. For now, the launch represents a significant, if limited, step forward in federal cannabinoid policy. From the OG Lab newsroom perspective, this move signals a slow but meaningful shift in federal attitudes toward cannabinoid access, highlighting both the progress and the persistent legal and political challenges that shape the U.S. cannabis landscape