LOUISVILLE, Ky.–( BUSINESS WIRE )–Cornbread Hemp, the USDA’s national leader in organic CBD products, announced today that it has received an exclusive contract with Alliant Purchasing, a national group purchasing organization (GPO) whose members include Accountable Care Organizations (ACOs) designated by the Centers for Medicare and Medicaid to participate in Medicare Engage and the Centers for Medicare Advantage. Innovation (CMMI). The contract names Cornbread Hemp as the exclusive hemp product supplier in this network, creating a procurement and distribution infrastructure that will serve 68,000 healthcare provider locations across the country – for ACO REACH and EOM participants before April 2026.
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 valid hemp products in the mainstream health care system. Under the program, organizations participating in the ACO REACH, Enhancing Oncology Model (EOM), and Long-Term Development ACO Design (LEAD) models may offer up to $500 per year of hemp products to eligible drug beneficiaries, provided directly by an eligible physician as part of a documented consultation. Medicines themselves do not pay for products; The cost is borne by the participating ACO as part of their model subscription.
Cornbread Hemp is not entering as a vendor seeking access to this system, but as a designated exclusive supplier in the GPO network already serving 68,000 healthcare provider locations nationwide – with the quality credentials, clinical infrastructure, and compliance profile that basic healthcare demands.
“Cornbread Hemp was founded on a simple conviction: that clean, organic, rigorously tested hemp products can meaningfully improve people’s lives,” said Eric Zipperle, Cornbread Hemp co-founder and CEO. “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, infrastructure, brand reputation, and category expertise to deliver the Medicare beneficiaries who deserve access to the best American-made hemp products.”
A specific GPO contract creates a provisioned distribution path
Union Purchasing has served healthcare providers for more than 35 years and leverages more than $82 billion in collective purchasing power on behalf of its membership. The decision to name Cornbread Hemp as the first specialty hemp provider of its kind reflects the due diligence — product quality review, compliance assessment, and supply chain reliability assessment — that a health care system requires before any vendor can offer it to its member facilities. Alliance members can now access Cornbread Hemp products through the same institutional supply chain they use for medical supplies and services, subject to each institution’s CMS-approved implementation plan, which is eligible to purchase Cornbread Hemp and Alliant to help establish an ACO.
“Cornbread Hemp offers alternative wellness solutions that support restful sleep, reduce stress and anxiety, and offer effective pain management for those seeking non-drug or more natural, organic options,” said Brandi Fehrenbach, RN, BSN, Chief Clinical Officer of Alliant Purchasing. “As the healthcare and legislative landscape evolves, these products are increasingly integrated into clinical discussions at the provider level in many states. We are excited to join a partner who shares our deep commitment to prioritizing patient outcomes and holistic care.”
Products meet all federal qualification requirements
CMS has defined precise eligibility criteria for hemp products used in the BEI: products must not contain more than 0.3% delta-9 THC; Must exclude inhalable forms; Must not contain more than 3mg per serving of tetrahydrocannabinol in orally administered form; And should exclude any cannabinoids that are 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 developed specifically for the standards that institutional healthcare demands. Key documents include:
- USDA certified organic – Cornbread Hemp has been offering USDA certified organic CBD products since 2019, providing the federal quality assurance that healthcare procurement demands with 19 different certified organic products that meet a wide range of patient needs.
- Flower Only™ Extract – Proprietary process exclusively sourced from organic Kentucky grown hemp flowers, preserving the full spectrum of naturally occurring cannabinoids, terpenes and flavonoids;
- GMP compliant manufacturing – All products manufactured in a GMP certified facility in Louisville, Kentucky;
- Independent third-party testing – All products that meet CMS’ clear quality and safety standards for BEI-eligible products are tested for strength accuracy, contaminants and microbial hazards;
- Clean organizational record – No FDA warning letters, no product recalls, and no enforcement actions in the company’s history.
Medical Advisory Board brings direct oncology experience
The Cornbread Hemp 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 direct clinical insight into the needs of Cornbread Hemp oncology patients, treatment protocols, and safety standards that healthcare providers need when prescribing 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,” said Leslie Mudd. “Cornbread Hemp products are regularly certified, rigorously lab tested and manufactured in accordance with GMP. This kind of quality is important for patients, especially cancer patients.”
The field of care partnership ensures real-world data collection
Cornbread Hemp has developed an excellent partnership with Realm of Care, 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, the field of care will provide the evidence infrastructure that will define best practices for CBD use in the Medicare system for years to come.
“We are grateful to partner with Cornbird Hemp in supporting patient-reimbursed research that ensures individuals are not only heard, but their time and life experiences are respected,” said Sasha Kulchef-Korn, CEO of Care Realm. “By working together, we can generate the real-world evidence needed to guide safe use, inform providers, and ensure that patient voices remain central to the future of cannabinoid care.”
American manufacturing and economic impact
Cornbread Hemp operates a manufacturing facility in Louisville, Kentucky, employing more than 100 Kentucky workers. Beginning in 2025, Governor Andy Beshear recognized the company’s expansion with a $1 million investment commitment and 50 new jobs, supported by the Kentucky Business Investment Incentive Agreement. In December 2025, Senator Rand Paul cut the ribbon to open an expanded cornbread hemp production facility. Inc. According to the magazine, the company in 2024 Inc. 5000 ranked number 122 on the list, making it the fastest growing hemp company in America that year.
Capturing the changing federal landscape
The CMMI pilot is working on a federal hemp definition that is subject to change this year. CMS has defined eligible products as containing no more than 0.3% delta-9 THC and no more than 3mg of tetrahydrocannabinols per serving in orally administered form. However, absent congressional action, the federal definition of a legal hemp product will be significantly narrowed on November 12, 2026 – reducing the allowable THC limit to 0.4mg per container. This change will negatively impact the range of products eligible for BEI and the wider commercial hemp market.
Cornbird 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. Cornbird Hemp is a long-standing member of the US Hemp Roundtable, and co-founder Jim Higdon has been appointed by the Roundtable’s board to serve as its chairman through 2026.
“The stakes of the November deadline for ACO participants and patients could not be higher,” said Jim Higden, Cornbird Hemp co-founder and chief communications officer. “That’s why Cornbird is committed to participating in the policy debate on their behalf, and we’re confident that the program’s clinical momentum will help make the case for a workable federal definition before the November deadline.”
About cornbread
Cornbread Hemp is a family-owned, vertically integrated hemp wellness company headquartered in Louisville, Kentucky. Founded in 2019 and family-owned, Cornbread Hemp is the national leader in USDA organic CBD products, made exclusively from Kentucky-grown hemp flowers. Inc. in 2024. 5000 at number 122, the company serves more than 750,000 customers across the country. Learn more at cornbreadhemp.com.
About the Alliant purchase
Alliance Purchasing is a creative, value-focused, and progressive healthcare innovation partner that has been serving providers nationwide for over 35 years. With a commitment to operational and financial innovation, the association empowers members to navigate today’s healthcare landscape through streamlined supply chain strategies and effective margin improvement opportunities. Leveraging more than $82 billion in purchasing power, Alliant supports 300 hospitals and 68,000 provider locations. Learn more at alliantpurchasing.com.
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