[PRESS RELEASE] – CALGARY, Alberta, April 1, 2026 – High Tide Inc., the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, announced that its wholly owned U.S. hemp-derived CBD subsidiary, NuLeaf Naturals, intends to pursue participation in the U.S. Centers for Medicare and Medicaid Services (CMS) Innovation Center’s Beneficiary Engagement Incentive (BEI) pilot program as suppliers of eligible hemp-derived CBD products, and has already begun engaging with participating organizations.
The pilot program, which launched on April 1, represents a significant step toward integrating hemp-derived CBD products into federally supported health care models. Under the program, participating Accountable Care Organizations (ACOs) under the ACO REACH Model and oncology practices under the Enhancing Oncology Model (EOM) may elect to furnish eligible hemp-derived products to Medicare beneficiaries at no cost, up to US$500 per year per beneficiary. CMS has indicated that the program may also expand to participants in its Long-term Enhanced ACO Design (LEAD) Model beginning Jan. 1, 2027.
NuLeaf Naturals, founded in 2014 in Denver, is one of America’s leading cannabinoid companies, with cGMP-certified and FDA-registered manufacturing facilities, with USDA organic certification currently in process. NuLeaf’s product portfolio includes THC-free and broad-spectrum CBD formats designed to align with the pilot program’s compliance requirements, covering the full range of eligible product formats under the program.
The company’s engagement with the CMS pilot program builds on the strategic foundation established through its founding membership in the National Compassionate Care Council (NCCC), a coalition of health care-focused organizations working to advance evidence-based cannabinoid policy and improve patient access to cannabinoid therapies across the United States.
“The launch of the CMS pilot program is a historic moment for the U.S. CBD industry and, most importantly, for the millions of Medicare beneficiaries who may now have access to hemp-derived cannabinoid therapies at no cost to themselves, with costs borne by participating organizations under CMS models,” High Tide founder and CEO Raj Grover said.
“NuLeaf Naturals has spent years building the quality systems, certifications, and product standards that this program demands,” he said. “We believe NuLeaf is well-positioned to serve as a trusted supplier to participating health care organizations, and we are actively engaging with ACOs and oncology programs to make that a reality. As this program scales, we believe it has the potential to become a meaningful growth driver for High Tide’s U.S. CBD business.”
Background on the Pilot Program
On Dec. 18, 2025, President Donald Trump signed an executive order attempting to advance the rescheduling of cannabis and directing federal agencies to improve access to full-spectrum CBD products. As part of that announcement, CMS Administrator Dr. Mehmet Oz confirmed that the CMS Innovation Center would launch a pilot program allowing Medicare beneficiaries to receive eligible hemp-derived CBD products at no cost if recommended by their physicians.
CMS has since published detailed guidance confirming that the BEI program will be available to participants in the ACO REACH Model and the Enhancing Oncology Model beginning April 1, 2026, with additional availability under the LEAD Model beginning Jan. 1, 2027. Participating organizations must submit an implementation plan to CMS for approval, detailing the specific products, dosing information, beneficiary eligibility criteria, and safeguards to be employed. Medicare does not directly pay for the products; the cost is borne by the participating organization as part of its model participation.
The program has been described by CMS as an opportunity to generate real-world clinical data on the use of hemp-derived CBD products within structured, physician-guided care settings, with the potential for full reimbursement and expansion when supported by evidence.
