Business
Some Medicare Patients Can Now Get Free CBD
The Trump administration has been making headlines for taking steps to loosen restrictions around cannabis, including legalizing it for medical use. Now it is beginning an experiment that places cannabis even more squarely into mainstream health care: thousands of Medicare patients soon will be able to get CBD, a nonintoxicating component, for free.
“ONE in FIVE adults used it in the past year, and many say it improved their chronic pain enormously,” President Trump wrote on social media last month in a post cheering the program.
The aim is to gather real-life evidence showing whether CBD can improve patients’ quality of life and, by extension, reduce health care costs, administration officials say.
CBD products are already popular with some Medicare-age patients. A 2024 study in Clinical Gerontologist found that 14.3 percent of patients 65 and older had used them in the past year. Patients usually purchase over-the-counter gummies and tinctures to ease anxiety, insomnia and chemo-related nausea.
“Millions of older adults are already integrating cannabinoid products into their health care routines, yet the health care system has almost no infrastructure to understand what they are spending, why they are using these products, or whether these expenditures reduce other health care costs,” said Sasha Kalcheff-Korn, the executive director of Realm of Caring, a nonprofit group that conducts research and promotes cannabinoid therapies.
Despite Mr. Trump’s ebullient endorsement, many doctors worry about encouraging the use of unapproved supplements to geriatric patients, who typically have multiple medical conditions and already take many medications, some of which could interact with CBD products to detrimental effect. Still, their concerns would be eased somewhat, they say, if patients collaborated with doctors on appropriate dosing, which is another goal of the government initiative.
”I believe that CBD should be available to all seniors as part of their health care, recommended by a provider with knowledge of cannabinoid medicine,” said Dr. Melanie Bone, the director of medical cannabinoid therapies at MorseLife, a senior residence in West Palm Beach, Fla. “It may help with a number of ailments of aging, and has almost no downside. But CBD is not a panacea. The only way to know if it works is to try.”
What does research show about CBD for older patients?
CBD, or cannabidiol, one of the most prominent compounds in the cannabis sativa plant, is nonintoxicating and known for its soothing effects on the central nervous system. Many CBD products are made from hemp, a legal strain of cannabis that is rich in CBD and has only small amounts of the intoxicating compound, THC. The Medicare program restricts the amount of THC that can be in hemp-derived CBD to 3 milligrams per serving.
In recent years, CBD has become increasingly attractive to older patients. Results from studies are mixed to positive. But many of the doses evaluated contained more THC than those allowed by the Medicare guidelines. Most researchers have noted the need for more rigorous gold-standard trials.
Mr. Trump’s assertion that one in five adults use CBD products, many for chronic pain, which was also included in supporting documents for an executive order announcing the program, appears to conflate self-reported surveys and polls that broadly address adult use of medical cannabis or CBD.
But a chief benefit of CBD that some studies do underscore is that many seniors use the products to replace opioids for pain and benzodiazepines for anxiety and insomnia, which can have troubling side effects.
The new Medicare program mandates that the CBD be given to patients only by doctors, who regularly review their medical history and reactions to the products.
How does the program work?
One of the main goals is to learn whether CBD can help older people feel better enough to get off, or avoid starting, prescriptions for pain, nausea, sleep and anxiety. The hope is that CBD could help prevent more expensive medical interventions that those drugs can lead to. Opioids, for example, can prompt dizziness, constipation, overdoses and trips to the emergency department.
Only a small subset of Medicare recipients — those who participate in a type of health care network called an Accountable Care Organization — will initially be eligible for the benefit. So far, just five large groups have been approved to offer CBD. By January, 2027, CBD will be offered to patients in all 74 ACO groups.
The participating organizations have providers across an array of states, including Oklahoma, Texas, Wisconsin, West Virginia and Arizona. Currently, only patients affiliated with programs in New York and Florida patients have begun receiving CBD products, according to a spokesperson for the Centers for Medicare and Medicaid Services.
Those doctors must buy the CBD products up front, spending up to $500 per patient a year. They must agree to screen patients and products carefully, and collect real-time data on how the CBD affects patients.
They will not be directly reimbursed for the CBD. In the incentive-based structure, these groups receive a budget from Medicare. Those that come in under budget by improving patient quality of life and reducing costs, now additionally equipped with CBD as a tool, will receive a percentage of those savings.
Are there any obstacles?
Yes.
Late last year, Congress passed a measure that could remove from the U.S. market most CBD products, including those that doctors suggest for patients.
That is because many CBD products contain far more THC and other synthetic, intoxicating compounds than Congress intended in 2018, when it created the legal definition of hemp, to distinguish it from marijuana. Many of those amped-up CBD items, packaged to look like candy, have led to calls to poison centers.
In reaction, Congress placed severe limits on hemp last year that are set to take place in November. Under those restrictions, Cornbread Hemp, a Kentucky-based company with a contract to supply CBD for the new program, will not be able to do so, because its products’ THC content is above the new limits. A patchwork of bills introduced in the Senate and the House are trying to slow or rewrite what amounts to a looming hemp ban.
In his social media post last month, Mr. Trump urged Congress to act.
“Please get it done, and SOON,” he wrote.
Business
More airlines suspend LAX routes due to high fuel costs
American Airlines is joining the list of airlines suspending flights to and from Los Angeles International Airport this summer.
It announced a temporary suspension of nonstop flight routes out of LAX to Cleveland, Columbus, Pittsburgh, and Washington Dulles airports. The suspension is set to last through August and September due to rising fuel prices resulting from the conflict in Iran.
American Airlines is not alone in this decision.
In April, Norse Atlantic Airways canceled all of its summer flights out of LAX to Europe, including destinations like London, Paris and Rome.
Allegiant Airlines also canceled its LAX operations in January, rerouting flights out of Hollywood Burbank Airport instead. To keep ticket prices down and align with its low-cost airfare model, Burbank was a better airport for the Los Angeles area due to lower operational costs than LAX.
With the conflict ongoing and the flow of oil uncertain, the cost of jet fuel could continue to rise, leaving more flight routes in jeopardy, especially in states like California.
Jet fuel prices in Los Angeles have jumped more than 40% since the conflict in the Middle East started. Airlines are adding baggage surcharges to cover fuel costs. Several routes leaving from smaller California hubs, including Sacramento and Burbank, have already been canceled.
As fuel supplies shrink, flight prices are rising.
The West Coast is a “fuel island” because it’s not connected by pipelines to the rest of the country, United Airlines Chief Executive Scott Kirby said in an interview in March. That means oil and refined products have to be brought in by ships.
“Fuel price is more susceptible to supply weakness on the West Coast than anywhere else in the country,” Kirby said.
A statement from American Airlines said it will not be suspending any of these routes indefinitely, and service to these cities from LAX will still be available with American Airlines, but a connection will be required.
American Airlines shares, which have fallen more than 13% so far this year, fell 2% Thursday to $13.30.
Business
Latest data show California conundrum: high growth but high prices, high unemployment
California, the epicenter of the artificial intelligence boom, continues to grow its economy faster than the nation, but more people are losing their jobs and the cost of living remains high.
New economic indicators released this week show how the Golden State is grappling with the effects of the Iran war, as well as an AI explosion, which is driving huge investments as well as layoffs.
The state’s unemployment rate reached 5.3% in April, roughly 1 percentage point higher than the nation’s. California’s unemployment rate is expected to peak at 5.6% later this year, according to the UCLA Anderson Forecast released this week.
The state outpaced the nation in economic growth in the fourth quarter of 2025. It probably continued to outgrow the country in the first three months of this year, the report said.
“Income and output will continue to grow faster than the U.S. even as employment growth is tepid,” senior economist Jerry Nickelsburg wrote in the forecast. “Once past the current weakness, expected by the middle of next year, a tech, durable goods manufacturing, and construction resurgence should lead to superior growth in both employment and income in the Golden State once again.”
The state’s growth is being bolstered by many local companies that are attracting and spending hundreds of billions of dollars in the race to build the software and infrastructure needed for AI. However, there are signs that the same race may be leading to fewer jobs in some sectors.
From January to May, U.S. tech employers announced 123,653 job cuts, up 66% from the same period a year earlier, according to a report Thursday by global outplacement and executive coaching firm Challenger, Gray & Christmas. California had close to 77,000 job cuts across all sectors, double the number of any other state.
Although AI was cited more often than any other reason for cuts, the layoffs haven’t been as bad as the pessimists feared, said Andy Challenger, a labor and workplace expert and chief revenue officer of Challenger, Gray & Christmas.
“AI isn’t yet the jobpocalypse some predicted,” he said in a statement. “Like spreadsheets and email before it, the technology will ultimately make workers more productive.”
California has seen job growth in sectors including healthcare and social services. But entertainment, tech and manufacturing businesses have been cutting back.
UCLA’s outlook paints a mixed picture of California’s future, one filled with uncertainty as the Iran war pushes up fuel prices, inflation rises, government policy changes and tariffs disrupt supply chains.
The state is particularly vulnerable to the effect of the war on Iran because it uses pricey low-emissions gasoline, and California ports accept cargo on ships that require large amounts of more expensive oil, according to the forecast.
California also is more dependent on oil from outside the country than other states.
The Iran war has caused gas prices to jump. Above, prices are at and over $6 a gallon at a station in Los Angeles on June, 2, 2026.
(Justin Sullivan / Getty Images)
It’s still too early to predict the fallout from the war on Iran, but economists expect it to negatively affect employment by the end of this year and into 2027, the quarterly forecast from UCLA said. It projected that national real GDP growth would shrink from around 2.3% this year to 1.8% next year.
The UCLA report did not provide a state GDP forecast, but said early indicators suggest California continues to outperform the country. Last year, the national real GDP growth rate was around 2%, the report said. California’s was closer to 2.5%, according to data from the U.S. Bureau of Economic Analysis.
Some are concerned that AI could worsen what’s called a “K-shaped” economy, in which the rich see growth and most other people struggle with stagnating opportunities. In California, it could also lead to an “E-shaped” economy, in which low, medium and high-income people each see slight growth.
That depends on whether AI ends up helping workers or replacing them, economist William Yu said.
“If it’s labor substitution, we are going to see this [as] more of a K-shaped economy. If it’s more of labor augmentation, we’re going to see more of [an] E-shaped economy,” he said at a conference about the report.
Tech companies say they are using AI to do more with fewer people. Yu said a lot of the AI spending is going into building out AI data centers rather than hiring.
Citing data from job search website Indeed, AI appears to be slowing down growth in software, information technology, marketing and media job postings, he said. But demand for civil and electrical engineers remains high. AI might not be affecting those roles, or reindustrialization policies are boosting hiring in those areas.
Business
Earwormy Kars4Kids jingle is back as charity appeals in California court
The Kars4Kids jingle is back on the air in California after being ordered off the airwaves last month.
The catchy jingle that has been getting stuck in heads for nearly three decades was pulled from the air after a California man took Kars4Kids to court for false advertising.
The man said he donated an old car to the charity, believing it would be used to benefit children in need. He was unaware that Kars4Kids gives the donations to another organization, Oorah, that uses the money to fund Jewish youth trips to Israel.
The Orange County court originally ruled the jingle a violation of California’s false advertising law for failing to disclose its religious affiliations, and it was subsequently pulled from the airwaves. Kars4Kids filed an appeal, and the court has ruled the jingle can stay on the air throughout the appeals process.
“Kars4Kids applauds today’s court ruling allowing its ads to continue airing in California while the appeals process continues,” a spokesperson for Kars4Kids said. “The uninterrupted airing of its ads will enable the charity to continue funding its programs for children and families. We believe the lower court’s findings on the facts and the law were deeply flawed, and we look forward to pursuing a broad appeal of that decision.”
Kars4Kids has run into allegations of false advertising before. Oregon and Pennsylvania also took the charity to court over the misleading jingle in 2009, resulting in a $130,000 fine and a requirement to disclose its affiliations in all advertisements.
A Kars4Kids spokesperson said last month that its website clearly states its Jewish affiliation.
“We believe this case was nothing more than a lawyer-driven attempt to siphon off charitable funds for their own gain,” the spokesperson said. “The law and the facts are clearly on our side.”
The nonprofit using the funds gathered by Kars4Kids has also previously used the donations for a matchmaking program for Jewish young adults and to purchase a $16.5 million building in Israel.
While the jingle could be pulled from the air again depending on the result of the appeal, for now, it will remain a part of your morning commute in California.
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