Court Dismisses Anti-Hemp Suit Over Medicare CBD Coverage for Lack of Standing

Federal health officials asked a court to dismiss a lawsuit by anti-cannabis groups led by SAM and a Medicare patient challenging CMS’s voluntary hemp-derived products coverage under Medicare, arguing the plaintiffs lack Article III standing and that the BEI component is not a new entitlement. The policy allows hemp-derived products (CBD) with up to 0.3% delta-9 THC and up to 3 mg total THC per serving, and is funded by providers up to a $500 annual cap per beneficiary. Plaintiffs contend the program diverts resources and harms their goals, but the government says there is no injury and no rulemaking required for this voluntary model. The case may seek to add MMJ as plaintiffs, a TRO was previously denied, and the matter continues to hinge on federal hemp vs. marijuana policy.