NY sues to stop federal Medicaid restrictions on youth transgender care

New York Attorney General Letitia James is one of several attorneys general suing the Trump administration over a new federal health care rule they say would cause "serious harm" to transgender youth and young adults.

The U.S. Department of Health and Human Services and Centers for Medicare and Medicaid Services issued a rule last month that no longer allows federal Medicaid reimbursements for medically necessary health care used to treat gender dysphoria in patients under 18 and imposes similar restrictions on Children's Health Insurance Program (CHIP) patients under 19.

James, along with 20 other attorneys general and Pennsylvania Gov. Josh Shapiro, filed the lawsuit to block the change on Wednesday, Sept. 2.

"The federal government does not

have the authority to dictate what medically necessary care New York provides to its residents," James said. "This unlawful rule threatens access to health care for transgender young people and undermines states' ability to administer our own Medicaid programs. New York will continue to stand up for patients and defend our authority to provide the care they need."

Here's what to know.

Why AG argues new federal health care rule would cause 'serious harm' to New Yorkers

Since states can choose to cover these gender-affirming care treatments, James and the coalition argue the Trump administration is abusing its power by banning federal reimbursement nationwide. Additionally, the same treatments — puberty-delaying medications, hormone therapies and surgical procedures — are still covered when provided for purposes other than gender dysphoria.

The lawsuit asserts the change will cause "serious harm" as it targets some of the most vulnerable individuals and "seeks to create illegal barriers to care for low-income patients who can't afford alternative coverage." The AG's Office says just 3.13 percent, or around 37,000 New York adolescents, identify as transgender, according to the Williams Institute. Only a fraction of them receive gender-affirming care, and even fewer seek Medicaid or CHIP reimbursement for this care.

States may also face "significant" new costs and administrative burdens on their Medicaid programs, and those that want to continue offering coverage of the gender-affirming care could be forced to take on "burdensome" costs that were previously shouldered by the federal government, the lawsuit asserts.

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Further, the lawsuit states that Congress never gave CMS the authority to independently refuse to reimburse health care that states chose to provide lawfully.

What federal officials say about issue

When federal health agencies issued the rule change, top officials in the Trump administration addressed the measure.

U.S. Department of Health and Human Services Secretary Robert F. Kennedy, Jr. asserted the move involved "ending federal taxpayer funding for sex-rejecting procedures on children.”

“These interventions carry serious risks and can cause irreversible harm," he said in a statement. "The federal government will no longer use Medicaid and CHIP dollars to fund procedures that fail to meet the evidentiary standard our children deserve.”

Emily Barnes covers state government for the USA TODAY Network-New York with a focus on how policy and laws impact New Yorkers' taxes, communities and jobs. Follow her on Instagram or X @byemilybarnes. Get in touch at [e-mail].

This article originally appeared on Rockland/Westchester Journal News: NY sues to stop federal Medicaid restrictions on youth transgender care