Some insurance will help you pay for parts of gender transition. Not all insurance will pay. Each policy is different. You must read your own policy to be sure.
Your policy may not work the same as another person’s, even if it is from the same insurance company. Policies are different for each employer and person. You must read your own policy for information about coverage.
This is a very general overview, since there are so many kinds of insurance. For more on financial issues, please see my section on financing transition.
General advice
Health insurance is a good investment
- Health insurance that may not cover gender health is better than no insurance at all. If you get sick or hurt, insurance may help you avoid huge medical bills.
Do not pin all your hopes on insurance
- You should still plan on saving for trans health services as if you will have to pay.
- You might get it, but many claims have been denied. Do not just give up, though. Be sure to review your policy and see what your options are.
- If you do get costs covered, you will have extra money you saved.
Read your policy very carefully
- Do not just rely on what is in an employee manual. Read the copy of the policy itself, and copies of anything you sign.
- You must read the exclusions. This is where you are most likely to find specific exclusions for “transgender surgery and related services.”
“Pre-existing condition”
- Some of us have been denied coverage because the insurance company determines they had a pre-existing condition. In other words, they will say you knew you had this “condition” when you signed on, so they do not have to cover it. For example, if you were taking hormones before making an insurance claim, they might try to say that you had a pre-existing condition. If they want, they could even say you committed fraud by not reporting the condition at the onset.
Unemployed
- You are going to be in big financial trouble in transition without a job. While some companies cover part-time employees on insurance, you should get a full-time job, any full-time job, if you expect any insurance coverage.
Self-employed
- You might be wise to speak with a lawyer about options if you own your own business. You can choose your policy, but the premium costs to cover gender healthcare may be prohibitive, and they might get you on the “pre-existing condition” clause. In other words, they might say you knew you had this condition when you signed on, so they are not obligated to cover it.
In a union
- This can be good or bad. Oftentimes, unions have gone to bat for our community, although the exact opposite has been true. I’m pretty unfamiliar with blue-collar work situations or unions in general. I suggest speaking with your union rep about this.
At a small company
- This can be good or bad, too. If the boss likes you and wants to keep you around, you might be able to convince them to get or change a policy to cover you. Sometimes a small company cannot afford the increased premium they would have to pay to cover insurance, though.
At a large company
- Again, this can be good or bad. Large companies often offer a choice of insurance, such as an HMO and a PPO. Check all policies before signing on. One might cover out-of-network providers better than another. Many gender therapists and doctors who provide gender health services are not part of insurance networks. You may also have a choice of Primary Care Physicians. Mine was totally cool about covering HRT. All I had to do was ask, even though it’s a specific exclusion.
Coverage for specific services
Hormones
- Many people get HRT covered through insurance as a “hormonal imbalance.” This usually slips under the insurance radar even on policies that specifically exclude transsexual surgery and related services. Prescriptions go through rather easily in most cases, but some have reported difficulties with injections. due to the expense and office visits.
- Postoperatively, you should have no problems getting hormones covered.
Therapy
- This one is quite easy to get through by listing it as “depression.”
Facial plastic surgery
- Some have been able to get face work tacked on as part of other corrective procedures. One woman writes she had her nose fixed during a correction to her jaw following a car accident. Another got her chin feminized as part of oral surgery to correct her overbite.
Bottom surgery
- This is usually the hardest to get covered. Many policies specifically exclude bottom surgery.
- A little background: bottom surgery was routinely covered in the US until a couple of medical articles came out in the late 1970’s showing high suicide rates among post-operative women. This came at the same time a couple of prominent gender clinics were closed, notably Johns Hopkins.
- The insurance companies pounced on these events as a chance to decry the procedure as elective, cosmetic, or experimental. It’s been an uphill battle since.
- While many women have not been able to get insurance coverage, some have. Usually, there are a lot of hoops through which to jump. In many cases you have to pay up front out of pocket yourself and get reimbursed, so you may need to save as if you will not be getting covered.
- Some insurance companies require you to meet in front of a board of company-appointed doctors for evaluation.
The news isn’t all bad, though. Taylor writes:
Minnesota has some very enlightened laws concerning the insurance industry and patients at large. I know personally of four cases here in Minneapolis, where Medica, A Division of Allina Health Systems, has paid for SRS in its entirety.
The first time they did this, another attorney here confronted them on the basis of discriminating against our patient population. After a successful out of court settlement, Medica is covering all subsequent operations. I believe other health carriers here will follow their lead for very good reason. It’s cheaper to pay 15 to 22 thousand dollars for a few operations, than defend against a class action suit which might result in payment for the surgery anyway, and compensatory damages including the legal fees of the patients.
I have found a very common practice in several states, where insurance companies will pay for psychotherapy, hormones, and other health related treatments. It depends on the language of the insurance policy itself and their willingness to abide by it. Often times a 50 to 75 dollar letter from an attorney to an insurance company can get the money flowing to the patient.
Setting up a medical expense account
This can be a good option for planning and saving for medical expenses tax-free. However, you usually have to use all the money within a given time frame (usually within that calendar year). The cool thing is you can use this for any medical expenses, since it’s not related to insurance. Check with your benefits administrator.
Elizabeth writes:
Some companies (mine included) have a fund that you can contribute to each year that you can then draw out tax-free to pay for unreimbursed medical expenses. Whatever you agree to contribute, and there is usually a cap, is available on Jan 2, even though you would continue to pay via payroll deductions throughout the year. Because this fund is free of all deductions, it can amount to a savings of 40 cents on the dollar or more. My HMO, like most, specifically excludes all expenses related to SRS (though I paid for mine long before I came to work here), the unreimbursed fund is for just such expenses.
Health Savings Accounts and Individual Retirement Accounts
A reader writes with some information:
This is an important development if you wish to put it up on your site. I’ve always been an advocate of HSA’s (Health Savings Accounts) as a planning tool for funding surgeries for TS folk. Now your can roll-over your IRA into an HSA to avoid taxation. In early 2007, California proposed enacting major changes that may include universal health coverage for all state residents:
A reader adds:
After reviewing individual and family plans to see if anything is covering GID I have come to the conclusion that the replies will be Auto Decline across the board.
If so take your âLetter of Declinationâ and apply for the California Major Risk Medical Insurance Program, which will cover HRT, Lab Work and Depending on the Plan Mental Health Services which are considered âMedically Necessaryâ. It will not cover Primary Gender (âGenitalâ) Surgery; and only a large group plan or TPA (Self-Funded) customized plan will do that if the employer elects it.
http://www.mesoarch.org/?archives=permanent&f=files/MRMIPBRO.pdf
Itâs better than having no coverage for those of us who are self-employed or donât have an employer sponsored plan.
I got the following from a reader in February 2007:
Iâm happy to report that I received the reply from the underwriter (see below) that although there is a Pre-existing Condition Exclusion for six months. The limited medical plan will cover GID under the Mental Health benefits section.
I started work on this program last year, and depended heavily on the Dr. Hortonâs research and the SF actuary experience summary in selling it to the carrier. Wes Huffman of America Protect spearheaded it with the underwriters, making this the free marketâs response to a National Health Insurance initiative, it just happens to cover GID.
It is a Limited Medical Plan and Iâm curious how well it does in the market place. Take a look at it with a discerning eye for utilization.
General Utilization Notes.
The program is guaranteed issue in all 50 States as a group plan through the National Congress of Employers www.thence.org <http://www.thence.org>
If youâre pre-diagnosed with GID there will be a six month waiting period before the plan benefit can kick in.
There isnât an auto-delineation for GID important.
There is an association benefit (see link www.thence.org <http://www.thence.org/> )
The plan will cover hormones at a discount similar to that of a pre-negotiated PPO discounted rate.
The plan will cover 5 doctorâs visits and one wellness visit a year at the scheduled reimbursement rate(see plan choices) under a first dollar payoutâthat means you can see a gender specialist or endocrinologist. Youâll pay less if you see a provider doctor, but you donât have to under this plan.
The plan will cover 3 lab tests per year at the scheduled reimbursement rate (see plan choices).
Psychotherapy is a covered benefit; see Policy Year deductible, insured percentage and Policy Year Maximum.
It will cover mastectomy and post mastectomy reconstruction.
The plan does not cover genital surgery.
General Notes:
At this time I donât see trends will allow for genital surgery, breast augmentation or FFS to be covered under individual policies at this time, and only trough group major medical will that be possible.
In May 2007, a reader sent this helpful link as well:
I just wanted to give you an update and a link to the Matrix; Health Care Options in All 50 States.
http://www.coverageforall.org/index.htmThe Health Care Options Matrixâą
http://www.coverageforall.org/our_services.htm#options
Print or download your stateâs free quick-reference guide to public and private health care options
My recommendation:
Again, do not plan financially on getting insurance coverage for trans health
You might also find it interesting to read this analysis of the San Francisco City and County Transgender Health Benefit (PDF). It demonstrates that massive numbers of claims from trans people do not occur once coverage is initiated.
See also
Companies with transgender health coverage
Resources
https://www.hrc.org/resources/finding-insurance-for-transgender-related-healthcare