WASHINGTON, D.C. — The Centers for Medicare & Medicaid Services will end federal Medicaid and Children’s Health Insurance Program funding for certain gender-transition treatments for minors beginning Oct. 13, imposing a nationwide financing restriction on puberty blockers, cross-sex hormones and surgeries while allowing a temporary transition period for current hormone patients.
The final rule applies only to the federal share of Medicaid and CHIP funding. It does not prohibit states or other payers from covering the affected services with nonfederal funds.
CMS said federal funding will remain available for up to six months after the rule takes effect to allow children and adolescents currently receiving hormone therapy to taper off treatment.
The rule does not change Medicaid or CHIP coverage requirements for mental health services. Medicaid’s Early and Periodic Screening, Diagnostic, and Treatment provisions will continue to cover eligible children’s mental health care, while CHIP will retain its federally required mental health benefits.
The Department of Health and Human Services characterized the affected treatments as “sex-rejecting procedures” and said its decision followed a review of U.S. and international research that identified evidence gaps and safety concerns regarding their use in minors.
HHS Secretary Robert F. Kennedy Jr. said the administration concluded that the treatments did not meet the evidentiary standard required for continued federal financing.
“The federal government will no longer use Medicaid and CHIP dollars to fund procedures that fail to meet the evidentiary standard our children deserve,” Kennedy stated.
CMS cited puberty blockers, cross-sex hormones and surgical procedures within the scope of the policy. The agency pointed to potential effects including infertility, impaired sexual function and diminished bone density among the risks considered in its review.
CMS also referenced the United Kingdom’s Cass Review and policy changes in other countries and U.S. states as part of the broader reassessment of medical treatment for minors experiencing gender dysphoria.
The rule represents a funding policy rather than a general federal ban on the treatments. Its direct reach is limited to federal Medicaid and CHIP dollars, leaving separate questions about state funding, private insurance and other payment sources outside the action described by CMS.
The final rule is scheduled to take effect Oct. 13.
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