Spillage

Their hatred for us is so great that it is spilling out into other areas.

Medicaid transgender care rule sets precedent that could restrict coverage of other drugs

Medicaid generally pays for drugs approved by the FDA. Trump’s rule could upend that

Stat

By John Wilkerson

Aug. 24, 2026

The Trump administration plans to use a new approach to deny Medicaid coverage of drugs for gender-affirming care. The precedent it sets could be used to avoid paying for other drugs, too, upending an expectation that Medicaid covers the vast majority of prescription medication.

The Centers for Medicare and Medicaid Services issued a final rule this month barring the use of federal Medicaid and CHIP funding to pay for pediatric gender-affirming medications and surgery. The rule, set to go into effect Oct. 13, attracted attention because it’s the latest development in the administration’s campaign to halt transgender health care for young people.

While KFF shoots it down...

Despite gender-affirming care being a best medical practice, recommended by major medical groups, including the American Medical Association, American Academy of Pediatrics, and the American Psychological Association, the new rule builds on a range of administration actions aimed at restricting this care, including within the Medicaid program. States have also increasingly sought to limit access, with the number restricting access rising from just 4 in 2023 to 27 states today. Additionally, dozens of providers have ceased to offer services, citing pressure from or fear of the administration. The final Medicaid rule represents the latest barrier to this care, this time focused on limiting access at the payer source.

[...]

As noted, the rule does not prevent states from covering these services using state-only funds, and some states may seek to do so. States have faced similar choices in the context of abortion. The federal Hyde Amendment prohibits use of federal Medicaid dollars to pay for abortions outside of specific contexts, but states can use their own funds to cover abortion services more comprehensively, which 21 states do. It would likely be a relatively small expenditure increase for states to absorb gender-affirming care costs given how relatively uncommon and inexpensive these services are. CMS estimates that Medicaid spent about $31 million on the prohibited services for enrollees under 19 years old in 2023, representing 0.003% of all Medicaid spending that year. Theoretically, families could also pay cash for these services, but given the income limits in the Medicaid program, it is not likely many would have the resources to do so. There could also be charitable funds set up at national or local levels.

Connecticut is one of the states that is suing (See my 1 o'clock post)

This is the Republicans who promised to get the government off of your back is now stepping between your doctor and you!