As reported in the Washington Post, Reuters and Marijuana Moment, President Trump posted a video on Truth Social endorsing Medicare coverage of hemp-derived cannabidiol (CBD), indicating the US government should move to incorporate CBD into the U.S. medical system. At a time when certain members of Congress and the Senate are pushing for policy changes that threaten to upend the CBD market, touting a promotion that calls for Medicare coverage of the cannabinoid is notable.
The video was produced by The Commonwealth Project, founded by Howard Kessler, a Palm Beach, Florida billionaire with ties to the CBD industry. Per the video, CBD could "revolutionize senior healthcare" by helping reduce disease progression and was shown as an alternative to prescription drugs. The video went on to indicate CBD is a "game changer," that could help "restore" the body's endocannabinoid system and ease pain, improve sleep and reduce stress for older Americans. The post also briefly features a Fox News clip referencing a Price Waterhouse Coopers report, which estimates a cost savings of "$64 billion a year if cannabis is fully integrated into the healthcare system."
President Trump's post jolted the cannabis industry and sent marijuana company stocks soaring on Monday, September 29. The post also raised hopes that President Trump will take a permissive approach to marijuana on the heels of his statement last month that his administration was looking to reclassify marijuana, and signaled support for a stalled Biden-era proposal to loosen federal restrictions on marijuana.
Regulations around the commercial use of hemp and CBD were significantly eased through the enactment of the 2018 Farm Bill during President Trump's first term. Since the passage of the 2018 Farm Bill, state legislative battles and litigation across the country have increased regarding federal and state definitions of hemp, the so-called "intoxicating hemp" loophole, and developing clear and consistent federal and state regulatory programs governing the cultivation, manufacture, marketing and sale of hemp-derived cannabinoid products, including CBD.
We will continue to keep you informed as states and the federal government grapple with the rapidly evolving policies and regulatory developments impacting marijuana and hemp derived cannabinoids. Buchanan's experienced FDA & Biotechnology Team, Cannabis Industry Group Life Sciences Industry Group and Government Relations Group are here to assist with any changes impacting your business.
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