CMS rule blocks Medicaid funding for pediatric gender-affirming care, raising legal challenges

The Centers for Medicare and Medicaid Services finalized a rule that prohibits the use of Medicaid and CHIP dollars to cover pediatric gender‑affirming medications and surgeries.

Previous attempts by the Trump administration to end transgender health care for youth faced multiple court defeats, but officials say this new rule may be more resistant to legal challenge.

The Department of Health and Human Services also released a report on diagnostic coding practices among gender‑affirming care providers and referred hundreds of health‑care groups to the Justice Department for investigation.

Despite these setbacks in court, the administration has successfully pressured dozens of hospitals to limit or close gender‑affirming services for young patients.