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Investing.com -- Cannabis stocks gained Wednesday following an article from Bloomberg reporting that the US Medicare program may soon cover CBD treatments for certain patients, providing a potential new revenue stream for the industry.
Tilray Inc (NASDAQ:TLRY) stock rose 3.7%, leading gains among major cannabis companies, while Curaleaf Holdings Inc (OTC:CURLF) climbed 2.2% and Innovative Industrial Properties Inc (NYSE:IIPR) advanced 2.4%. Other sector players including Aurora Cannabis Inc (NASDAQ:ACB), Cronos Group Inc (NASDAQ:CRON), and Canopy Growth Corp (NASDAQ:CGC) also moved higher, gaining 1.5%, 1.4%, and 0.7% respectively.
The rally came after Bloomberg reported that the Centers for Medicare & Medicaid Services (CMS) is planning an initiative that would make some US Medicare patients eligible for CBD coverage. According to people familiar with the matter, an early version of the plan focused on seniors in oncology and palliative care settings.
CBD, or cannabidiol, is a non-psychoactive compound found in cannabis that doesn’t cause a high but is used to treat various conditions including cancer symptoms, sleep disorders, anxiety, pain, and inflammation.
The report indicated that Howard Kessler, a payments financier advocating for expanded CBD access, met with Health and Human Services Secretary Robert F. Kennedy Jr. about the issue last month. A CMS spokesperson declined to comment on potential future actions, Bloomberg said.
Cannabis stocks previously surged in September when President Trump shared a video on Truth Social supporting Medicare coverage of CBD, describing the compound as a natural remedy that could extend seniors’ lives.