In Historic Move, Medicare Pilot to Reimburse CBD for Cancer Care

LOUISVILLE, CO – December 18, 2025 – In a transformative development for U.S. healthcare policy, the federal government has initiated a landmark pilot program that will, for the first time, allow Medicare and Medicaid to reimburse senior cancer patients for hemp-derived CBD products. The initiative, driven by the Center for Medicare and Medicaid Innovation (CMMI) and fortified by a presidential executive order, signals a seismic shift in the integration of plant-based wellness into mainstream medicine.

Charlotte's Web Holdings, Inc., a pioneer in the hemp wellness industry, announced today it will serve as a premier CBD provider for the program, which is set to launch in early 2026. The move aims to provide millions of seniors with affordable access to science-backed therapeutic hemp options for supportive care during their battle with cancer. The pilot represents a potential new model of care that prioritizes personalization and affordability, directly addressing the high out-of-pocket costs that have long been a barrier for patients seeking alternative therapies.

"Charlotte's Web is proud to participate in the CMMI program to bring trusted CBD options to underserved seniors battling cancer," said CEO Bill Morachnick in a statement, referencing the company's foundational mission inspired by Charlotte Figi, whose story propelled CBD into the national spotlight. "This initiative marks a historic step forward, uniquely positioning Charlotte's Web to expand access to safe, non-intoxicating hemp CBD products through existing pathways."

A New Frontier in Patient Care

The pilot program is designed to test an innovative payment and delivery model focused on a vulnerable population. Under the framework, eligible senior oncology patients on Medicare, including those with Medicare Advantage plans, could receive reimbursement of up to $500 annually for approved CBD products. These products must meet stringent safety and quality standards and be recommended by a physician.

Charlotte's Web will facilitate access through a secure online healthcare portal, an expansion of its existing medical channel that ensures patient and provider data remains protected. This platform is designed not just for distribution but also for data collection, a key objective of the CMMI. The Center's mandate is to test models that improve care and reduce costs, with successful pilots having the potential for broader expansion without new congressional action.

To ensure comprehensive support beyond mere product access, the program integrates the services of Realm of Caring, a respected nonprofit organization. Participants will receive personalized consultations on product selection and dosing, structured outcomes tracking, and coordinated communication with their healthcare providers. This integrated approach aims to transform anecdotal use into guided, evidence-based care, capturing real-world data to inform the program's evolution and future research.

"Scientific rigor underpins every aspect of this program," stated Dr. Marcel Bonn-Miller, Chief Scientific Officer at Charlotte's Web. The company's Scientific Advisory Board will play a crucial role in overseeing product integrity and educational efforts, ensuring the initiative is grounded in clinical validation and ethical responsibility.

The Science of Supportive Oncology

The decision to include CBD in a federally backed program rests on a growing body of scientific interest in its therapeutic potential for cancer patients. While not a treatment for cancer itself, CBD is increasingly studied for its role in managing the debilitating side effects of the disease and its treatments, such as chemotherapy. Preclinical and some clinical studies suggest CBD may help alleviate chronic pain, reduce inflammation, combat nausea, ease anxiety, and improve sleep.

However, the medical community remains cautious. Leading bodies like the American Society of Clinical Oncology (ASCO) maintain that evidence is currently insufficient to broadly recommend cannabinoids for most cancer-related symptoms outside of a clinical trial. A primary concern among oncologists is the potential for CBD to interact with chemotherapy drugs, as it can affect how the liver metabolizes certain medications, possibly altering their efficacy or increasing toxicity. Experts universally advise that patients consult their oncology team before integrating CBD into their care regimen.

This pilot program directly addresses this gap between patient interest and clinical evidence. By creating a structured, monitored environment, it aims to gather the high-quality, real-world data needed to better understand CBD's safety and effectiveness in a clinical setting, potentially paving the way for more confident and widespread adoption by healthcare providers.

A Market Divided: Opportunity and Existential Threat

The announcement has sent waves of optimism through the U.S. hemp industry, an estimated $28 billion sector. For companies like Charlotte's Web, becoming a reimbursed therapy under Medicare is a monumental achievement, offering a first-mover advantage in a vast and untapped medical market of 67 million beneficiaries. It provides a powerful stamp of validation, moving CBD from the wellness aisle into the sphere of insured healthcare.

Yet, this breakthrough moment is shadowed by a looming and contradictory regulatory threat. A provision in a continuing resolution signed into law on November 12, 2025, is set to redefine hemp in one year. Effective November 12, 2026, the legal definition will shift from being based on delta-9 THC content to "total THC," a measure that includes other non-intoxicating precursor cannabinoids. Industry experts warn this change would render the vast majority of current full-spectrum CBD products federally illegal, as compliant cultivation and extraction would become nearly impossible. This has been described by some as a potential "extinction event" for the industry.

This paradox places the CMMI pilot in a precarious position: it is set to launch just months before its foundational products could be outlawed. The same presidential executive order that spurred the CBD pilot also directed the administration to work with Congress on a new regulatory framework and, significantly, instructed the Department of Justice to move marijuana from Schedule I to Schedule III of the Controlled Substances Act. This suggests a high-level administrative push to reconcile these conflicting policies, but the outcome remains deeply uncertain, leaving the industry in a state of both unprecedented opportunity and profound peril.

The Future of Patient-Centered Care

For senior cancer patients and their families, the policy debate is secondary to the immediate promise of relief. The financial burden of both cancer treatment and supportive care can be overwhelming, and CBD products often carry a high price tag. By offering reimbursement, this pilot program makes a potentially beneficial therapy accessible to low-income seniors who need it most.

Patient advocacy groups have long highlighted the use of CBD for managing multi-symptom clusters, including pain, anxiety, and insomnia, which are common in oncology. The ability to access quality-controlled products under medical guidance is a significant step forward from the current landscape, where patients often self-direct their use based on informal advice and purchase products from an unregulated market.

For healthcare providers, the program offers a pathway from clinical guesswork to structured, evidence-based practice. With dedicated support from organizations like Realm of Caring, physicians can feel more confident recommending and monitoring a therapy that their patients are increasingly asking about. While this pilot is a limited first step, its success could fundamentally alter the integration of cannabinoid medicine into the U.S. healthcare system, ultimately hinging on the ability of policymakers and scientists to build a stable regulatory and clinical foundation for its use.