US HHS drops rule to block Medicaid funding for transgender youth care

The Department of Health and Human Services announced it will not finalize a proposed rule that would have barred Medicaid and Medicare payments to hospitals providing gender‑affirming care to transgender minors. The rule, first proposed in December, faced more than 30,000 public comments and was described as an unprecedented use of federal leverage to restrict medical treatment.

Experts said the abandonment represents a victory for advocates of transgender health rights, noting that the rule would have conflicted with the Medicare Act and existing state authority over medical practice. The decision follows legal challenges to related policies and widespread opposition from medical groups such as the American Medical Association and the Children’s Hospital Association.