The federal Centers for Medicare & Medicaid Services (CMS) has finalized a rule to clarify that marijuana products are not eligible for coverage under certain health plans for chronically ill patients because “they are illegal substances under Federal law.”
CMS announced that, in a Federal Register notice to be published next week, a number of technical and policy changes to its Medicare Advantage program (MA), and to other services will take place on June 3, including the rulemaking relating to cannabis products.
In an earlier notice that was released by the agency in December, it also clarified that CBD is a nonintoxicating cannabis cannabinoid that’s on the list of things that are not covered as a supplement benefit.
CMS is a part of U.S. Department of Health and Human Services. The policy changes are intended to codify a “non-exhaustive” list of services or items that have no reasonable expectation of maintaining or improving health of a Chronically Ill enrollee and, therefore, cannot be considered as Special Supplemental Benefits for the Chronically Ill (SSBCI).
On the list were “alcohol and tobacco products”, as well as funeral costs, hospital indemnity, and life insurance.
It said that “CMS received inquiries from MA groups about whether or not they were permitted to provide cannabis-based products for a supplement benefit.” In response to the inquiries received, CMS stated that MA organizations cannot cover medical marijuana, or its derivatives such as cannabis oils, as these substances are illegal under Federal Law.
CMS mentioned CBD in its previous notice regarding the proposed rule. The agency had “determined that CBD items and services are not permitted MA supplemental benefit because they do meet the requirements that the item be health-related.”
In 2021, HHS and the governor of California’s office looked into whether hospitals and other healthcare facilities in legal marijuana states can allow terminally ill patients to use medical cannabis without jeopardizing federal funding.
It was a response to California senator Ben Hueso’s (D) call for such treatment to be codified in California hospitals.
A letter was sent to the Senator by CMS at that time stating that no federal regulations were in place that addressed this specific issue. CMS also said that they weren’t aware that funding had been cut because a medical marijuana program is allowed.
Meanwhile, ahead of his inauguration in January, President Donald Trump selected physician and TV personality Dr. Mehmet Oz to oversee CMS, potentially adding a pro-medical marijuana voice to the forthcoming administration.
Robert F. Kennedy Jr. is also confirmed as the secretary for HHS. Advocates hope that he’ll move forward with major drug policy reforms, which he advocated when he ran for President in 2024. Since joining the Trump Administration, he did not renew his previous calls for the legalization of marijuana and psychedelics. Instead, he deferred to the Drug Enforcement Administration on a cannabis rescheduling plan.
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