Hospitals providing gender-affirming care to minors would lose federal Medicaid and Medicare funds under rules the Trump administration’s top health officials proposed Thursday.
The rules would prohibit Medicaid funds from covering gender-affirming care for minors and revoke Medicare and Medicaid dollars from hospitals that provide it. The policy is subject to public comment and will likely face legal challenges. But if enacted, it would effectively ban gender-affirming care by kneecapping hospitals that both provide most of that care and rely heavily on Medicare and Medicaid payments to survive.
KFF, a health policy nonprofit, reported Medicaid and Medicare accounted for nearly 45% of all spending on hospital care in 2023, about $675 billion. Children’s Minnesota could not immediately provide its Medicaid/Medicare reimbursements, and the Minnesota Hospital Association declined to comment because it was still reviewing the announcement from the Center for Medicare and Medicaid Services.
Unlike 27 other states, Minnesota law protects access to gender-affirming care, and the decision from the federal Department of Health and Human Services doesn’t change that. But the news has still created an existential crisis for providers, policymakers and advocates.
President Donald Trump began his second term earlier this year with executive orders that called gender-affirming care “mutilation" and said the U.S. recognizes “two sexes, male and female.”
“This isn’t about a measured approach to science or medicine,” said Kat Rohn, executive director of OutFront Minnesota, the state’s largest LGBTQ advocacy group. “This is really about a wholesale assault on transgender people’s ability to be part of public life.”
Rep. Angie Craig, a Democrat representing the southern Twin Cities metro and outlying rural areas, said in a statement the rules would burden an already taxed health care system.
“Folks in every corner of Minnesota will feel the impacts of these funding cuts,” Craig said.