High Tide Subsidiary NuLeaf Naturals Pursues Participation in U.S. Medicare CBD Pilot Launching Today

Executive Summary

• High Tide’s U.S. hemp‑derived CBD subsidiary, NuLeaf Naturals, is actively pursuing supplier status in the newly launched CMS Innovation Center Beneficiary Engagement Incentive (BEI) pilot program.
• The BEI pilot allows participating Accountable Care Organizations and oncology practices to provide eligible hemp‑derived CBD products to Medicare beneficiaries at no cost (up to US$500 per beneficiary per year).
• Management views the pilot as a potential “meaningful growth driver” for High Tide’s U.S. CBD business, citing NuLeaf’s cGMP‑certified, FDA‑registered facilities and ongoing USDA Organic certification.

Key Details

• Program Launch: CMS BEI pilot began on April 1 2026; additional eligibility under the LEAD Model may start Jan 1 2027.
• Eligibility & Scope: ACO REACH Model and Enhancing Oncology Model participants can furnish eligible hemp‑derived CBD products to Medicare beneficiaries, with costs borne by the participating organization (not Medicare).
• Financial Impact Potential: Up to US$500 per beneficiary annually; High Tide expects scalable demand if selected as a supplier.
• NuLeaf Qualifications: cGMP‑certified and FDA‑registered manufacturing facilities; USDA Organic certification in process; product portfolio includes THC‑free and broad‑spectrum CBD formats that meet pilot compliance requirements.
• Strategic Foundations: Participation builds on High Tide’s founding membership in the National Compassionate Care Council (NCCC), a coalition aimed at expanding patient access to cannabinoid therapies.
• Management Commentary:
• Raj Grover, Founder & CEO, highlighted the historic nature of the pilot and its potential to provide “meaningful growth” for the U.S. CBD business.
• Regulatory Context: The pilot follows an Executive Order (Dec 18 2025) directing federal agencies to improve access to full‑spectrum CBD products; CMS guidance released April 1 2026 outlines implementation plan requirements for participating organizations.

Notable Quotes

“The launch of the CMS pilot program is a historic moment for the U.S. CBD industry… we believe it has the potential to become a meaningful growth driver for High Tide's U.S. CBD business.” – Raj Grover, Founder and CEO, High Tide Inc.