Blue states sue Trump over Medicaid ban on trans youth treatments

A coalition of 22 states and Washington, D.C. sued the Trump administration Wednesday over a CMS final rule barring federal Medicaid and CHIP reimbursement for puberty blockers, hormone therapy and surgery when used to treat gender dysphoria in minors. The states note the same treatments remain federally reimbursable for other medical purposes, arguing the carve-out targets transgender youth specifically rather than the treatments themselves.

The lawsuit, filed in Massachusetts federal court against HHS and CMS, claims the administration lacked statutory authority to override states' individualized Medicaid coverage determinations, and calls the rule arbitrary and capricious. The states point out that over 90% of public comments on the proposed rule opposed it, yet HHS implemented it anyway on August 13.

New York Attorney General James said the federal government lacks authority to dictate what care New York provides its Medicaid recipients. It's the latest in a string of multistate suits against the administration's targeting of transgender care access, following prior challenges to an HHS safety declaration and pressure campaigns against hospitals.

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