[PRESS RELEASE] – LOUISVILLE, Ky., March 25, 2026 – Cornbread Hemp, a national leader in USDA organic CBD products, announced that it has secured an exclusive contract with Alliant Purchasing, a national Group Purchasing Organization (GPO) whose member network includes Accountable Care Organizations (ACOs) designated to participate in the landmark Substance Access Beneficiary Engagement Incentive (BEI) administered by the Center for Medicare and Medicaid Innovation (CMMI).
The contract names Cornbread Hemp as the exclusive hemp product supplier within that network, creating a purchasing and distribution infrastructure that serves 68,000 health care provider locations nationwide – before the program's April 2026 launch for ACO REACH and EOM participants.
The CMMI pilot represents the first time that hemp-derived CBD products will be made available to Medicare beneficiaries through participating ACOs – a historic shift in federal health care policy that places medically credible hemp products inside the mainstream health care system. Under the program, participating organizations in the ACO REACH, Enhancing Oncology Model (EOM), and Long-term Enhanced ACO Design (LEAD) models may elect to offer eligible Medicare beneficiaries up to $500 per year in hemp products, furnished directly by a qualified physician as part of a documented clinical consultation. Medicare itself does not pay for the products; the cost is borne by the participating ACO as part of their model participation.
Cornbread Hemp enters this system not as a vendor seeking access, but as the designated exclusive supplier within a GPO network already serving 68,000 health care provider locations nationwide – with the quality credentials, clinical infrastructure and compliance profile that institutional health care demands.
"Cornbread Hemp was built on a simple conviction: that clean, organic, rigorously tested hemp products can meaningfully improve people's lives," Cornbread Hemp co-founder and CEO Eric Zipperle said. "The CMMI pilot is the most important moment in the history of the hemp industry, and we believe Cornbread is uniquely positioned to serve it. We have the certifications, the infrastructure, the brand reputation and the category expertise to deliver for Medicare beneficiaries who deserve access to the best hemp products America produces."
Exclusive GPO Contract Creates Ready-Made Distribution Pathway
Alliant Purchasing has served health care providers for more than 35 years and leverages more than $82 billion in collective buying power on behalf of its membership. Its decision to name Cornbread Hemp as a first-of-its-kind exclusive hemp provider reflects the institutional due diligence – product quality review, compliance assessment, and supply chain reliability evaluation – that the health care system requires before recommending any vendor to its member facilities. Alliant members can now access Cornbread Hemp products through the same institutional supply chain they use for medical supplies and services, subject to each organization’s CMS-approved Implementation Plan, which Cornbread Hemp and Alliant Purchasing are qualified to help ACOs establish.
"Cornbread Hemp provides alternative wellness solutions that support restorative sleep, alleviate stress and anxiety, and offer effective pain management for those seeking non-narcotic or more natural, organic options," said Brandy Fehrenbach, RN, BSN, Chief Clinical Officer at Alliant Purchasing. "As the health care and legislative landscapes evolve, these products are increasingly being integrated into clinical discussions at the provider level across many states. We are excited to align with a partner that shares our deep commitment to prioritizing patient outcomes and holistic care."
Products Meet All Federal Eligibility Requirements
CMS has defined precise eligibility standards for hemp products used in the BEI: Products must contain no more than 0.3% delta-9 THC; must exclude inhalable formats; must contain no more than 3 milligrams per serving of tetrahydrocannabinol in orally administered form; and must exclude any cannabinoids not naturally produced by the cannabis plant. Products must also be tested by an independent third party for potency, contaminants and microbial hazards.
Cornbread Hemp enters the CMMI program with a quality and compliance profile built specifically for the standards that institutional health care demands. Key credentials include:
- USDA Certified Organic – Cornbread Hemp has offered USDA-certified organic CBD products since 2019, providing the federal quality assurance that health care procurement demands, with 19 different certified organic products that meet a wide variety of patient needs.
- Flower-Only™ Extraction – Proprietary process sourcing exclusively from organic Kentucky-grown hemp flowers, preserving a fuller spectrum of naturally occurring cannabinoids, terpenes and flavonoids.
- GMP-Compliant Manufacturing – All products are manufactured in a Good Manufacturing Practice-certified facility in Louisville, Ky.
- Independent Third-Party Testing – All products are tested for potency accuracy, contaminants and microbial hazards, meeting CMS's explicit quality and safety standards for BEI-eligible products.
- Clean Regulatory Record – Cornbread Hemp has no FDA warning letters, no product recalls and no enforcement actions in the company’s history.
Medical Advisory Board Brings Direct Oncology Expertise
Cornbread Hemp's Medical Advisory Board is chaired by Leslie Mudd, PharmD, a board-certified oncology pharmacist who has served on the board since 2020 and brings 20 years of clinical experience at the James Graham Brown Cancer Center at the University of Louisville. Her expertise provides Cornbread Hemp with direct clinical insight into oncology patient needs, treatment protocols, and the safety standards that health care providers require when recommending hemp products to their most vulnerable patients.
“The inclusion of Cornbread Hemp products in the formulary for this initiative is a win for both patients and physicians,” Mudd said. “Cornbread Hemp products are organically certified, rigorously lab tested, and manufactured according to GMP. Such quality is important for patients, particularly cancer patients.”
Realm of Caring Partnership Ensures Rigorous Real-World Data Collection
Cornbread Hemp has established a preferred partnership with Realm of Caring, a nonprofit organization dedicated to cannabinoid research, patient education and real-world outcomes data. As the CMMI pilot generates patient data on CBD use among Medicare beneficiaries, Realm of Caring will provide the evidence infrastructure that will define best practices for CBD use within the Medicare system for years to come.
"We are grateful to partner with Cornbread Hemp in supporting patient-compensated research that ensures individuals are not only heard, but respected for their time and lived experience," Realm of Caring Executive Director Sasha Kalcheff-Korn said. "By working together, we can build the real-world evidence needed to guide safer use, inform providers and ensure patient voices remain central to the future of cannabinoid care."
American Manufacturing and Economic Impact
Cornbread Hemp operates a production facility in Louisville, employing more than 100 Kentucky workers. In early 2025, Gov. Andy Beshear recognized the company's expansion with a $1 million investment commitment and 50 new jobs, backed by a Kentucky Business Investment incentive agreement. In December 2025, U.S. Sen. Rand Paul cut the ribbon to open Cornbread Hemp's expanded production facility. According to Inc. Magazine, the company ranked No. 122 on the Inc. 5000 list in 2024, making it the fastest-growing hemp company in America that year.
Navigating a Shifting Federal Landscape
The CMMI pilot operates within a federal hemp definition that is subject to change this year. CMS has defined eligible products as those containing no more than 0.3% delta-9 THC and no more than 3 milligrams per serving of tetrahydrocannabinols in orally administered form.
However, absent congressional action, the federal definition of a legal hemp product will narrow significantly on Nov. 12, 2026 – reducing the allowable THC threshold to 0.4 milligrams per container. That change would negatively affect the range of products eligible for the BEI and the broader commercial hemp market.
Cornbread Hemp is actively engaged in federal policymaking on this issue. The company maintains working relationships with every member of the Kentucky congressional delegation, senators from neighboring states and members of the California delegation. Cornbread Hemp is a longtime member of the U.S. Hemp Roundtable, and co-founder Jim Higdon has been elected by the roundtable's board to serve as its chairman in 2026.
“The stakes of the November deadline for ACO participants and patients couldn’t be higher,” Higdon said. “That’s why Cornbread is committed to engage in the policy debate on their behalf, and we are confident that the program's clinical momentum will help make the case for a workable federal definition before the November deadline."
