The Centers for Medicare & Medicaid Services (CMS) is opening the door for select health care organizations to incorporate eligible hemp derived products into patient care plans beginning April 1. The move comes through a new Substance Access Beneficiary Engagement Incentive (BEI), an option available within certain CMS Innovation Center models.
The initiative reflects a broader push by the administration to explore patient‑centered innovations and aligns with a recent executive order from President Donald Trump supporting research into hemp‑derived medical products.
CMS Administrator Dr. Mehmet Oz said in an announcement that the effort aims to expand safe, clinician‑supervised options for patients. “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,” he noted.
Initially, the BEI will be available to organizations participating in the ACO REACH Model and the Enhancing Oncology Model (EOM), with expansion planned for the Long‑Term Enhanced ACO Design (LEAD) Model in 2027. Five Accountable Care Organizations in ACO REACH have already submitted implementation plans for CMS review, and approved participants are expected to begin offering the incentive this spring.
CMS Innovation Center Director Abe Sutton said the BEI gives clinicians “another tool – with necessary safeguards to support their patients’ needs,” particularly when evaluating whether hemp‑derived products may help with symptom management.
Strict limits on eligible products
Only hemp‑derived products that comply with federal, state, and local laws—and contain no more than 0.3 percent delta‑9 THC—are eligible for use under the BEI. In addition, CMS will exclude inhalable products, orally administered products with more than 3 mg of tetrahydrocannabinols per serving, and any cannabinoids not naturally produced by the cannabis plant during cultivation.
Products must also meet stringent quality and safety criteria, including third‑party potency and contaminant testing. The initiative does not override the Controlled Substances Act and does not authorize Schedule I substances.
Under the program, participating organizations may furnish up to $500 worth of eligible hemp products per beneficiary each year, but only as part of a clinician‑directed care plan.
Shared decision‑making and safeguards
Clinicians must determine whether product use is safe and appropriate and engage patients in shared decision‑making, including a review of medications and follow‑up planning. Participating organizations are responsible for procurement and must adhere to program‑integrity rules, including restrictions on marketing and financial relationships.
CMS emphasized that the BEI does not change Medicare coverage policies. Providers will not receive payment or reimbursement for hemp‑derived products through the program. Instead, the BEI operates as a supplemental tool within Innovation Center models as CMS evaluates how emerging therapies may fit into cost‑effective care delivery.
Future plans and industry expert reaction
CMS plans to monitor implementation closely and collect data on outcomes and patient safety. Officials stress that the agency is not making claims about the therapeutic benefits of hemp‑derived products but sees value in testing their integration under controlled conditions.
In a LinkedIn post, Shannon Decker, Ph.D., founder & CEO of VBC One, a national value-based care strategy and operations firm, said that the announcement signals where value-based care is headed. CMS continues to test non-traditional care tools, place emphasis on clinician-guided personalization, encourage accountability without direct reimbursement, and reinforce program integrity and governance expectations.
She encourages health plans, accountable care organizations, or risk-bearing providers to evaluate the action as a pilot signal from CMS, assess their clinical governance and decision frameworks, strengthen their compliance, documentation, and audit readiness, and identify where non-covered interventions cold still drive return on investment,
The bigger picture, she wrote, is that “CMS is continuing to test how far value-based care can extend beyond traditional reimbursement—while maintaining accountability for outcomes, safety, and integrity. This is less about the product……and more about the evolution of the care model.”