The White House has scheduled four meetings with cannabis industry and research stakeholders this week to discuss a proposed enforcement policy regarding CBD products. The Office of Information and Regulatory Affairs (OIRA), part of the White House Office of Management and Budget (OMB), announced plans to review a yet-to-be-published guidance titled “Cannabidiol (CBD) Products Compliance and Enforcement Policy,” which has been submitted by the Food and Drug Administration (FDA).
Various stakeholders can request meetings to discuss this policy, with sessions set for April 1-2. David Heldreth, CEO of Panacea Plant Sciences, was the first to secure a meeting, emphasizing his intent to encourage the FDA to generate comprehensive guidance on CBD that extends beyond cannabinoid isolates.
Following Heldreth, the White House has accepted meeting requests from Trent Woloveck of Jushi Holdings, Mackie Barch of Story Cannabis, and Iowa hemp farmer Earl Ramey. These discussions precede significant changes to federal hemp laws, which are poised to impact the industry as a ban on many consumable cannabinoid products containing THC is set to take effect in November. The FDA is also tasked with publishing a list of known cannabinoids under existing law, though it has missed the deadline for this obligation.
Implications of Federal Policy Changes
Speculation suggests that the enforcement policy guidance OIRA is reviewing could be linked to an executive order signed by former President Trump in December, which aims to reschedule marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA). This move is anticipated to remove some research barriers and allow state-licensed marijuana businesses to access federal tax deductions that are currently restricted under IRS code 280E.
The Centers for Medicare & Medicaid Services (CMS) recently provided additional details concerning its plan to cover certain hemp-derived products for eligible patients. Patients may have up to $500 of these products covered annually under specific insurance programs, beginning as early as Wednesday. The plan will permit a limited amount of THC in products, but it is subject to modification pending federal hemp policy changes expected in November.
For participating centers, it is essential that CBD products are sourced from “legally compliant sources and high-quality farms,” prepared as oral solutions, and tested to ensure they contain no more than 0.3 percent delta-9 THC per dry weight and up to 3 milligrams of total THC per serving. CMS stated that centers receiving Beneficiary Engagement Incentives (BEI) will be able to consult with eligible beneficiaries regarding the use of qualifying hemp products to aid in symptom control.
Shifts in Policy and Market Effects
This new pilot program comes shortly after a co-founder of Charlotte’s Web, which has collaborated with CMS, indicated that the agency has finalized its plans for federal health insurance coverage of cannabidiol. While CMS had previously implemented a rule excluding marijuana and CBD derived from federally legal hemp from coverage under its Medicare Advantage program, revisions to this policy are now in progress.
CMS has announced a series of changes as part of ongoing rulemaking processes affecting insurance program areas such as drug coverage and member enrollment, with particular attention to cannabidiol coverage.
As the cannabis market continues to evolve, stakeholders in Mississippi and beyond are closely monitoring these developments, which hold considerable implications for the cannabis industry’s regulatory landscape and business opportunities.