HHS has agreed, in a Jan. 6 court filing, not to issue Medicare or Medicaid exclusion notices to hospitals and other providers that offer gender-affirming care to children while a lawsuit from Democratic state attorneys general proceeds in federal court. The agency's proposed rules would bar such hospitals from Medicare and Medicaid and prevent Medicaid and CHIP from covering gender-affirming services for minors. The court-approved briefing schedule pauses exclusion actions until the court rules on a summary judgment motion or 30 days after any hearing, with key deadlines through March.
U.S. Pauses Medicare/Medicaid Exclusion Notices For Child Gender‑Affirming Care Providers While Legal Challenge Proceeds
FILE PHOTO: U.S. Health and Human Services (HHS) Secretary Robert F. Kennedy Jr., speaks during a press conference at the Department of Health and Human Services in Washington, D.C., U.S., November 10, 2025. REUTERS/Elizabeth Frantz/File Photo
WASHINGTON, Jan. 7 (Reuters) - A court filing shows the U.S. Department of Health and Human Services (HHS) has agreed not to issue Medicare or Medicaid exclusion notices to hospitals and other providers that offer gender-affirming care to children while a lawsuit brought by Democratic-led states moves through federal court.
Background
Last month, HHS proposed rules that would bar hospitals providing gender-affirming care from participating in Medicare and Medicaid programs and would prevent Medicaid and the Children’s Health Insurance Program (CHIP) from covering those services for minors. The proposal was described by officials as part of a broader effort to limit legal protections for transgender people across several domains, including healthcare, education, the military, and the workplace.
Legal Challenge And Joint Court Agreement
A coalition of Democratic state attorneys general filed suit in federal court in Oregon, arguing that the proposed HHS rules unlawfully attempt to dictate medical standards, intimidate clinicians, and encroach on states' authority to regulate medical practice. In a court filing dated Jan. 6, the parties recorded a joint agreement on a briefing schedule and a temporary pause on exclusion actions.
“This agreement brings clarity for patients, families, and providers,” said Jennifer Levi, Senior Director of Transgender and Queer Rights at GLBTQ Legal Advocates & Defenders (GLAD), in a statement. “HHS has committed that, while this litigation proceeds, it will not initiate Medicare exclusion actions against hospitals providing transgender health care.”
Key Dates And Terms
Under the agreed schedule, HHS will not issue Medicare or Medicaid exclusion notices until the court rules on a motion for summary judgment or until 30 days after any such hearing, whichever is later. The briefing timetable calls for:
- HHS to file its response and any cross-motion by Feb. 10;
- Plaintiffs to file replies and any responses by March 3;
- Defendants to file replies in support of cross-motions by March 24.
Implications
The temporary agreement ensures that, for the time being, hospitals and clinicians who provide gender-affirming care to minors will not face immediate exclusion from federal health programs while the court evaluates the legality of the proposed rules. The case will test the scope of federal authority to dictate medical standards and the balance between federal rulemaking and state regulation of medical practice.
(Reporting by Ahmed Aboulenein; Editing by Nia Williams)
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