[Federal Register Volume 90, Number 242 (Friday, December 19, 2025)]
[Proposed Rules]
[Pages 59463-59478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-23465]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

42 CFR Part 482

[CMS-3481-P]
RIN 0938-AV87


Medicare and Medicaid Programs; Hospital Condition of 
Participation: Prohibiting Sex-Rejecting Procedures for Children

AGENCY: Centers for Medicare & Medicaid Services (CMS), Department of 
Health and Human Services (HHS).

ACTION: Proposed rule.

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SUMMARY: This proposed rule would revise the requirements that Medicare 
and Medicaid certified hospitals must meet to participate in the 
Medicare and Medicaid programs. These changes are necessary to protect 
the health and safety of children and reflect HHS' review of recent 
information on the safety and efficacy of sex-rejecting procedures 
(SRPs) on children. The revisions to the requirements would prohibit 
hospitals from performing sex-rejecting procedures on children.

DATES: To be assured consideration, comments must be received at one of 
the addresses provided below, no later than 5 p.m. on February 17, 
2026.

ADDRESSES: In commenting, please refer to file code CMS-3481-P.

[[Page 59464]]

    Comments, including mass comment submissions, must be submitted in 
one of the following three ways (please choose only one of the ways 
listed):
    1. Electronically. You may submit electronic comments on this 
regulation to http://www.regulations.gov. Follow the ``Submit a 
comment'' instructions.
    2. By regular mail. You may mail written comments to the following 
address ONLY: Centers for Medicare & Medicaid Services, Department of 
Health and Human Services, Attention: CMS-3481-P, P.O. Box 8016, 
Baltimore, MD 21244-8016.
    Please allow sufficient time for mailed comments to be received 
before the close of the comment period.
    3. By express or overnight mail. You may send written comments to 
the following address ONLY: Centers for Medicare & Medicaid Services, 
Department of Health and Human Services, Attention: CMS-3481-P, Mail 
Stop C4-26-05, 7500 Security Boulevard, Baltimore, MD 21244-1850.
    For information on viewing public comments, see the beginning of 
the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: 
    For press inquiries: CMS Office of Communications, Department of 
Health and Human Services; email [email protected].
    For technical inquiries: CMS Center for Clinical Standards and 
Quality. Department of Health and Human Services. 
[email protected].

SUPPLEMENTARY INFORMATION: 
    Inspection of Public Comments: All comments received before the 
close of the comment period are available for viewing by the public, 
including any personally identifiable or confidential business 
information that is included in a comment. We post all comments 
received before the close of the comment period on the following 
website as soon as possible after they have been received: http://www.regulations.gov. Follow the search instructions on that website to 
view public comments. CMS will not post on Regulations.gov public 
comments that make threats to individuals or institutions or suggest 
that the commenter will take actions to harm an individual. CMS 
continues to encourage individuals not to submit duplicative comments. 
We will post acceptable comments from multiple unique commenters even 
if the content is identical or nearly identical to other comments.
    Plain Language Summary: In accordance with 5 U.S.C. 553(b)(4), a 
plain language summary of this proposed rule may be found at https://www.regulations.gov/.

I. Background

    On January 28, 2025, President Trump signed Executive Order (E.O.) 
14187 ``Protecting Children from Chemical and Surgical Mutilation.'' 
\1\ In particular, Section 5(a) of the order directs the Secretary of 
HHS consistent with applicable law to ``take all appropriate actions to 
end the chemical and surgical mutilation of children, including 
regulatory and subregulatory actions, which may involve [. . .]: 
Medicare or Medicaid conditions of participation or conditions for 
coverage.'' CMS has developed this proposed rule in compliance with 
this E.O. As further discussed in this proposed rule, we describe CMS' 
statutory authority related to patient health and safety standards 
(known as Medicare ``Conditions of Participation'' (CoPs), ``Conditions 
for Coverage'' (CfCs), or simply ``Requirements''), summarize data on 
the rise of sex-rejecting procedures (SRPs) on children, review the 
latest information on SRPs in children as described in the HHS Review 
(the Review), provide an overview of State laws, as well as prior CMS 
actions on this topic. We propose to add a new section to 42 CFR part 
482, subpart C that would prohibit Medicare-participating hospitals 
from performing sex-rejecting procedures (SRPs) on any child (Sec.  
482.46(a)).
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    \1\ ``Protecting Children from Chemical and Surgical 
Mutilation.'' The White House, 28 Jan. 2025, https://www.whitehouse.gov/presidential-actions/2025/01/protecting-children-from-chemical-and-surgical-mutilation/.
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A. Statutory Authority

    CMS has broad statutory authority under the Social Security Act 
(the Act) to establish health and safety regulations, which includes 
the authority to establish requirements that protect the health and 
safety of children. Section 1861(e)(9) of the Act, applicable to 
hospitals that participate in the Medicare program, explicitly gives 
CMS the authority to enact regulations that the Secretary finds 
necessary in the interest of the health and safety of individuals who 
are furnished services in a hospital, while section 1871 of the Act 
gives CMS the authority to prescribe regulations as necessary to carry 
out the administration of the program. Under this authority, the 
Secretary has established regulatory requirements that a hospital must 
meet to participate in Medicare at 42 CFR part 482, entitled 
``Conditions of Participation'' for Hospitals. Section 1905(a) of the 
statute provides that Medicaid payments from States may be applied to 
hospital services. Under regulations at Sec. Sec.  440.10(a)(3)(iii) 
and 440.20(a)(3)(ii), hospitals that provide inpatient and outpatient 
services, respectively, to Medicaid enrollees are required to meet the 
Medicare CoPs to also participate in Medicaid. In this way, the CoPs 
regulate the safety of all patients in a facility that is subject to 42 
CFR part 482, regardless of payor (for example, Medicare, Medicaid, 
private insurance, and self-pay).
    The CoPs for hospitals include specific, process-oriented 
requirements for certain hospital services or departments. The purposes 
of these conditions are to protect patient health and safety and to 
ensure that quality care is furnished to all patients in Medicare-
participating hospitals.

B. Sex-Rejecting Procedures for Children With Gender Dysphoria

1. The Rise of Chemical and Surgical Interventions for Children as Part 
of Sex-Rejecting Procedures for Gender Dysphoria
    Gender dysphoria is a condition defined by the American Psychiatric 
Association's Diagnostic and Statistical Manual of Mental Disorders 
(DSM-5-TR) as a ``marked incongruence between one's experienced/
expressed gender and assigned gender'' that ``must also be associated 
with clinically significant distress or impairment in social, 
occupational, or other important areas of functioning.'' 2 3 
Over the past decade, increasing numbers of children have been 
diagnosed with gender dysphoria and been treated with 
SRPs.4 5 SRPs can encompass a range of hormonal and surgical 
interventions: pharmacological interventions including puberty blocking 
medications to delay the onset of puberty, cross-sex hormone therapy to 
promote secondary sexual

[[Page 59465]]

characteristics associated with the opposite biological sex, and 
surgical procedures (such as chest/breast and genital 
surgery).6 7
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    \2\ Coleman, E., et al. ``Standards of Care for the Health of 
Transgender and Gender Diverse People, Version 8.'' International 
Journal of Transgender Health, vol. 23, suppl. 1, 2022, pp. S1-S259. 
Taylor & Francis Online, doi:10.1080/26895269.2022.2100644.
    \3\ American Psychiatric Association. Diagnostic and Statistical 
Manual of Mental Disorders. 5th ed. Edition, Text Revision, American 
Psychiatric Publishing,2022, https://doi.org/10.1176/appi.books.9780890425787.
    \4\ Coleman Eli, et. al., ``Standards of Care for the Health of 
Transgender and Gender Diverse People, Version 8.'' International 
Journal of Transgender Health, vol. 23, suppl. 1, 2022 pp. S1-S259. 
Taylor & Francis Online, https://www.tandfonline.com/doi/pdf/10.1080/26895269.2022.2100644.
    \5\ Hembree, Wylie C., et al., ``Endocrine Treatment of Gender-
Dysphoric/Gender-Incongruent Persons: An Endocrine Society Clinical 
Practice Guideline.'' The Journal of Clinical Endocrinology & 
Metabolism, vol. 102, no. 11 (13 September 2017, pp. 3869-3903, 
https://academic.oup.com/jcem/article/102/11/3869/4157558.
    \6\ Coleman, Eli, et al. ``Standards of Care for the Health of 
Transgender and Gender Diverse People, Version 8.'' International 
Journal of Transgender Health, vol. 23, suppl. 1, 2022, pp. S1-S259. 
Taylor & Francis Online, https://doi.org/10.1080/26895269.2022.2100644.
    \7\ Hembree, Wylie C., et. al. ``Endocrine Treatment of Gender-
Dysphoric/Gender-Incongruent Persons: An Endocrine Society Clinical 
Practice Guideline.'' The Journal of Clinical Endocrinology & 
Metabolism. vol. 102, no. 11, 1 November 2017, https://academic.oup.com/jcem/article/102/11/3869/4157558.
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    The recorded prevalence of SRPs for children with gender dysphoria 
varies across sources. A study published in 2023 estimated that between 
2016 and 2020, nearly 3,700 children aged 12 to 18 years old diagnosed 
with gender dysphoria underwent SRPs (2.50 per 100,000),\8\ including 
an estimated 3,200 chest/breast procedures (2.17 per 100,000) \9\ and 
400 genital surgeries (0.27 per 100,000).10 11 Another study 
documented that almost 0.2 percent (or almost 2 in every 1,000) of 17-
year-olds \12\ with private insurance received SRP hormone treatment 
between 2018 through 2022.13 14
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    \8\ CMS calculation: The annual number of overall SRPs (Breast/
chest surgery, genital surgery, and other cosmetic procedures) on 
children aged 12 to 18 years is 740. The annual estimated number of 
children aged 12 to 18 according to U.S, Census Bureau data is 
29,600,770. This results in annual estimate of 2.17 chest/breast 
procedures per 100,000 children aged 12 to 18 ((643/29,600,770) x 
100,000 =2.50)). This calculation assumes 1 SRP per person.
    \9\ CMS calculation: The annual number of breast/chest surgeries 
on children aged 12 to 18 years is 643. The annual estimated number 
of children aged 12 to 18 according to U.S, Census Bureau data is 
29,600,770. This results in annual estimate of 2.17 breast/chest 
surgeries per 100,000 children aged 12 to 18 ((643/29,600,770) x 
100,000 =2.17)). This calculation assumes 1 breast/chest surgery per 
person.
    \10\ CMS calculation: The annual number of genital surgeries on 
children aged 12 to 18 years is 81. The annual estimated number of 
children aged 12 to 18 according to U.S. Census Bureau data is 
29,600,770. This results in annual estimate of 0.27 genital 
procedures per 100,000 children aged 12 to 18 ((81/29,600,770) x 
100,000 =0.27)). This calculation assumes 1 genital surgery is done 
per person.
    \11\ Wright J. D., et al. ``National estimates of gender-
affirming surgery in the US.'' JAMA Network Open, vol. 6, no. 8, 
e2330348, 23 Aug. 2023, http://jamanetwork.com/journals/jamanetworkopen/fullarticle/2808707.
    \12\ CMS calculation: Per the article, the highest rate of 
hormone treatment occurs at age 17 with 140 AFAB adolescents 
(assigned female at birth) receiving testosterone (per 100,000 is 
0.14% (140/100,000) x100=0.14%)) and 82 AMAB adolescents (assigned 
male at birth) receiving estrogen (per 100,000 is 0.082% (82/
100,000) x100 =0.082%). This results in 222 (82+140= 222) per 
100,000 or 0.222 (0.14% + 0.082% = 0.222). This calculation assumes 
1 sex rejecting hormone treatment is done per person.
    \13\ Hughes Landon D., et al., ``Gender-affirming medications 
among transgender adolescents in the US.'' JAMA Pediatrics, 179,3 
(2025): 342-344. doi:10.1001/jamapediatrics.2024.6081, https://pubmed.ncbi.nlm.nih.gov/39761053.
    \14\ CMS calculation: 140 + 82 = 222. This results in an 
estimate of 222 SRP hormone treatment per 100,000 children aged 17, 
between 2018 through 2022. This calculation assumes 1 SRP hormone 
treatment is done per person.
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    While Medicare does not pay for a significant number of SRP 
procedures for children, we conclude that, based on the previously 
cited data, hospitals that participate in Medicare perform a 
considerable number of these procedures every year. We further note 
that the Medicare hospital CoPs apply to hospitals providing services 
to patients receiving Medicaid covered services ((Sec. Sec.  
440.10(a)(3)(iii) and 440.20(a)(3)(ii)). Approximately half of U.S. 
children receive health care through Medicaid.
2. Medical Evidence Regarding Sex-Rejecting Procedures in Children
    The rising numbers of children seeking and receiving SRPs in recent 
years \15\ has spurred ongoing debates regarding the safety and 
efficacy of these interventions.
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    \15\ Wright, Jason D., et al.. ``National Estimates of Gender-
Affirming Surgery in the US.'' JAMA Network Open, vol. 6, no. 8, 23 
Aug. 2023, doi:10.1001/jamanetworkopen.2023.30348, http://jamanetwork.com/journals/jamanetworkopen/fullarticle/2808707.
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a. The HHS Review
    In compliance with Executive Order (E.O.) 14187, ``Protecting 
Children from Chemical and Surgical Mutilation'' \16\ signed on January 
28, 2025 (as discussed previously in this proposed rule), HHS released 
a preliminary comprehensive review of the evidence and best practices 
for treating pediatric gender dysphoria on May 1, 2025.\17\ On November 
19, 2025, HHS published a final version following the conclusion of a 
peer review process.\18\ the Review provides an overview of systematic 
reviews--also known as an ``umbrella review''--to evaluate the evidence 
of the benefits and harms of SRPs in children. Several existing 
systematic reviews of evidence that have informed health authorities in 
Europe were assessed for methodological quality.
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    \16\ 90 FR 8771 (February 3, 2025).
    \17\ U.S. Department of Health and Human Services (HHS). 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office Of Population Affairs, 1 May 2025. 
https://opa.hhs.gov/gender-dysphoria-report.
    \18\ U.S. Department of Health and Human Services (HHS), 
``Treatment for Pediatric Gender Dysphoria: Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs,19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report.
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    The Review itself does not provide clinical or policy 
recommendations. Instead, it analyzes evidence and best practices for 
children experiencing gender dysphoria. The Review also contains an 
ethics review that applies widely accepted principles of medical ethics 
to the practice of SRPs in children.\19\ Accordingly, the Review 
states:
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    \19\ U.S. Department of Health and Human Services (HHS). 
``Treatment for Pediatric Gender Dysphoria: Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025, 
https://opa.hhs.gov/gender-dysphoria-report, Pg. 218-246.
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    ``As demonstrated throughout this Review, the presuppositions that 
guide [pediatric medical transition (PMT)] have not been shown to be 
valid; the nature, probability and magnitude of risks associated with 
PMT have not been distinguished with sufficient clarity; PMT 
proponents' estimates of the probability of harm and benefit have not 
been shown to be reasonable, as judged by known facts and available 
studies; and the risks of serious impairment that PMT involves have not 
been shown to be justified. For these reasons, administering PMT to 
adolescents, even in a research context, is in tension with well-
established ethical norms for human subjects research.'' \20\
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    \20\ U.S. Department of Health and Human Services (HHS). 
``Treatment for Pediatric Gender Dysphoria: Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025, 
https://opa.hhs.gov/gender-dysphoria-report, Pg., 246.
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    The Review (as further discussed in Section I.B.c. of this proposed 
rule) provides evidence of the clinical realities of SRPs in the United 
States, documenting the abandonment of medical guardrails. For example, 
the Review highlights how a protocol establishing SRPs in minors 
originated in the Netherlands and quickly spread to other Western 
countries without rigorous testing, and was codified in medical 
guidelines, which later did away with some of their already contested 
safeguards.\21\ The Endocrine Society (ES) incorporated puberty 
blockers and hormones into their 2009 and 2017 clinical practice 
guidelines, recommending hormonal interventions for certain pediatric 
patients with gender dysphoria while also acknowledging the lack of 
reliable evidence for these treatments.\22\ ES justified this 
recommendation in a ``values and preferences'' statement that places a 
higher priority on ``avoiding a[n] unsatisfactory physical outcome when 
secondary sex characteristics have

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become manifest and irreversible'' than on ``avoiding potential harm 
from early pubertal suppression.'' \23\
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    \21\ Biggs, M. (2023b). The Dutch Protocol for juvenile 
transsexuals: Origins and evidence. Journal of Sex & Marital 
Therapy, 49(4), 348-368.
    \22\ Hembree, Wylie C., et al. ``Endocrine treatment of 
transsexual persons: An Endocrine Society clinical practice 
guideline.'' Journal of Clinical Endocrinology & Metabolism, vol. 
94, 9, 2009: 3132-52/doi:10.1210/jc.2009-0354.
    \23\ Hembree, Wylie C., et al. ``Endocrine treatment of gender-
dysphoric/gender-incongruent persons: An Endocrine Society clinical 
practice guideline. Endocrine Practice,'' 23(12), 2017: 1437-1437.
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    The World Professional Association for Transgender Health (WPATH) 
endorsed a similar approach and most recently recommend these in their 
Standards of Care, Version 8 (SOC-8).\24\ However, as carefully 
documented in the Review, the creation of SOC-8 marked ``a clear 
departure from the principles of unbiased, evidence-driven clinical 
guideline development.'' \25\ The HHS Review cites court documents 
containing internal WPATH communications used when developing SOC-8 
that show WPATH suppressed systematic reviews of evidence after 
learning that these reviews would not support its preferred medical 
approach. WPATH also failed to manage conflicts of interest and 
eliminated age minimums for hormones and most surgeries due to 
political pressures.\26\ A recent systematic review of international 
guidelines did not recommend either the WPATH or ES guidelines for 
clinical use after determining they ``lack developmental rigour and 
transparency.'' \27\
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    \24\ Coleman, Eli, et al. ``Standards of Care for the Health of 
Transsexual, Transgender, and Gender-Nonconforming People, Version 
7.'' International Journal of Transgenderism, 13(4), 165-232.
    \25\ U.S. Department of Health and Human Services (HHS). 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report,, p. 181.
    \26\ U.S. Department of Health and Human Services (HHS). 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report, p. 157-186.
    \27\ Taylor, Jo, et al. ``Interventions to suppress puberty in 
adolescents experiencing gender dysphoria or incongruence: A 
systematic review.'' Archives of Disease in Childhood, vol. 109, 
Suppl. 2, s33-s47, 30 Oct. 2024, doi:10.1136/archdischild-2023-
326669.
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b. International Reviews of SRPs in Children
    The Review also describes practice reversals in several European 
countries (Norway, Finland, Sweden, Denmark, United Kingdom) following 
systematic reviews of evidence.
    In 2020, Finland's Council for Choices in Health Care, a monitoring 
agency for the country's public health services, issued guidelines 
stating that ``gender reassignment of minors is an experimental 
practice.'' While not banning SRPs outright, the guidelines state 
``based on studies examining gender identity in minors, hormonal 
interventions [puberty blockers, hormone therapy] may be considered 
before reaching adulthood in those with firmly established transgender 
identities, but it must be done with a great deal of caution, and no 
irreversible treatment should be initiated.'' \28\ For children with 
gender dysphoria prior to and worsening at the onset of puberty, the 
report recommends that ``puberty suppression treatment [that is, 
puberty blockers] may be initiated on a case-by-case basis after 
careful consideration and appropriate diagnostic examinations if the 
medical indications for the treatment are present and there are no 
contraindications.'' This is similar to past recommendations, and as 
before, these treatments would be limited to research settings for 
payment by the nation's health service. For children with gender 
dysphoria that have undergone puberty, the guidelines recommend that 
decisions regarding initiation of hormone treatment that alter sex 
characteristics be ``based on thorough, case-by-case consideration, [. 
. .] [and] only if it can be ascertained that their identity as the 
other sex is of a permanent nature and causes severe dysphoria [. . .] 
and that no contraindications [that is, mental health conditions] are 
present.'' Previously, recommendations noted that hormone therapy 
should not begin before age 16 in this group and that patients under 18 
may receive 3 to 6 months of puberty blockers prior to beginning 
hormone therapy. The current report mentions no age or month specific 
treatment guidelines. The report continues to recommend that all such 
interventions be done in a research setting. The report adds that 
``[i]nformation about the potential harms of hormone therapies is 
accumulating slowly and is not systematically reported'' and calls for 
further rigorous research of the benefits and risks of these 
treatments. Consistent with past recommendations, the report adds that 
``surgical treatments are not part of the treatment methods for 
dysphoria caused by gender-related conflicts in minors.'' \29\
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    \28\ Council for Choices in Health Care Finland. ``Finnish 2020 
COHERE Guidelines for Minors Finland)'' certified translation. IFTCC 
Archives, 2020, https://archive.iftcc.org/finnish-2020-cohere-guidelines-minors-finland-certified-translation.
    \29\ Council for Choices in Health Care Finland. ``Finnish 2020 
COHERE Guidelines for Minors Finland)'' certified translation. IFTCC 
Archives, 2020, https://archive.iftcc.org/finnish-2020-cohere-guidelines-minors-finland-certified-translation.
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    In 2022, Sweden's National Board of Health and Welfare (NBHW) 
reviewed and updated its guidelines for treatment of children with 
gender dysphoria.30 31 At the population level, NBHW issued 
``weak, negative recommendation as guidance to the healthcare system'' 
that the risks of hormone treatment (which included gonadotropin 
releasing hormones (GnRH) also known as puberty blockers) and 
mastectomy likely outweigh the expected benefits for most adolescents. 
NBHW concludes that ``existing scientific evidence is insufficient for 
assessing the effects of puberty suppressing and gender-affirming 
hormone therapy on gender dysphoria, psychosocial health and quality of 
life of adolescents with gender dysphoria.'' While not banning access 
to SRPs, NBHW suggests restricting such treatments to exceptional 
circumstances or research settings, and adhering to the original 
``Dutch protocol'' criteria including ``existence of the incongruence 
since childhood, the stability of gender identity over time, clear 
distress caused by the onset of puberty, and the absence of factors 
that complicate the diagnostic assessment.'' \32\ The report did not 
discuss SRP surgeries aside from mastectomy.
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    \30\ The National Board of Health and Welfare (Socialstyrelsen). 
``Care of children and adolescents with gender dysphoria: Summary of 
National Guidelines.'' Dec. 2022. https://www.socialstyrelsen.se/publikationer/care-of-children-and-adolescents-with-gender-dysphoria--summary-of-national-guidelines--december-2022-2023-1-8330.
    \31\ The National Board of Health and Welfare (Socialstyrelsen). 
``Care of children and young people with gender Dysphoria--National 
knowledge support with recommendations for the profession and 
decision makers.'' 16 Dec. 2022. https://www.socialstyrelsen.se/globalassets/sharepoint-dokument/artikelkatalog/kunskapsstod/2022-12-8302.pdf.
    \32\ The National Board of Health and Welfare (Socialstyrelsen). 
``Care of children and adolescents with gender dysphoria-summary of 
national guidelines.'' Dec 2022, https://www.socialstyrelsen.se/publikationer/care-of-children-and-adolescents-with-gender-dysphoria--summary-of-national-guidelines--december-2022-2023-1-8330/.
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    In the United Kingdom, the National Health Service (NHS) 
commissioned a comprehensive review of the existing literature on SRPs 
and the prevailing service model. The 4-year independent evaluation of 
pediatric gender medicine (PGM), known as the ``Cass Review,'' was 
published by Dr. Hilary Cass in April 2024. The Cass review concluded 
that the evidence base for SRPs in children is ``remarkably weak'' and 
recommended restructuring of the service model towards prioritization 
of psychotherapy.\33\
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    \33\ Cass, Hilary ``Cass Review Final Report.'' The National 
Archives, Apr. 2024, https://cass.independent-review.uk/home/publications/final-report.
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    In terms of research quality, the Cass Review notes that the number 
of studies on gender dysphoria treatment in children is very low, with 
small study sizes that have inconsistent metrics, low

[[Page 59467]]

quality methods (uncontrolled observational studies), results of low 
certainty, and lack of longitudinal data (that is, do not follow youth 
into adulthood; average duration of hormone treatment is between 1 year 
and 5.8 years). The Cass Review notes that this weak evidence base 
makes conclusions regarding the benefits versus risk of gender 
dysphoria treatment in children extremely difficult to assess. The Cass 
Review also critiques WPATH guidelines, noting that WPATH's own 
systemic review acknowledges a high risk of bias in study designs, 
small sample sizes, and confounding variables.
    Regarding guideline development, the Cass Review notes that most 
current guidelines have not followed the international standards for 
guideline development, including the WPATH guidelines. As such, the 
Cass Review only recommends two guidelines: the Finnish guideline 
(2020) and the Swedish guideline (2022) as discussed above. However, 
the Cass Review notes that even these guidelines lack clear 
recommendations regarding certain aspects of practice and ``would be of 
benefit if they provided more detailed guidance on how to implement 
recommendations.''
    While not banning access to puberty blockers, Dr. Cass concluded in 
a July 2023 letter that ``because of the potential risks to 
neurocognitive development, psychosexual development and longer-term 
bone health, [puberty blockers] should only be offered under a research 
protocol [for treatment of pediatric gender dysphoria].'' NHS England 
and National Institute for Health and Care Research (NIHR) have enacted 
this recommendation as of December 2024. Exceptions are permitted for 
non-gender dysphoria-related medical conditions (i.e. precocious 
puberty) and for those patients already on treatment.\34\ For hormone 
interventions, the Cass Review highlights a lack of high-quality 
research assessing the (long-term) outcomes of hormone interventions in 
children with gender dysphoria. Given this weak evidence base, Dr. Cass 
notes that ``no conclusions can be drawn about the effect [of hormone 
interventions] on gender dysphoria, body satisfaction, psychosocial 
health, cognitive development, or fertility. Uncertainty remains about 
the outcomes for height/growth, cardiometabolic and bone health.'' the 
Cass Review ultimately calls for caution, better research (prospective 
studies with long-term outcome data), honest communication with 
patients about the limitations of current knowledge, and development of 
evidence-based guidelines that acknowledge the limitations of current 
evidence. Of note, in the United Kingdom, children have never received 
gender dysphoria related surgery as paid by the NHS; Cass therefore did 
not systemically review evidence for gender dysphoria related surgeries 
in children.
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    \34\ Department of Health and Social Care. ``Ban on puberty 
blockers to be made indefinite on experts' advice.''GOV.UK, 11 Dec. 
2024. https://www.gov.uk/government/news/ban-on-puberty-blockers-to-be-made-indefinite-on-experts-advice.
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    Norway and Denmark are exploring or have enacted similar 
restrictions, though neither have issued direct bans of SRPs. In 2023, 
the Norwegian Commission for the Investigation of Health Care Services 
(Ukom), an independent State-owned agency, made recommendations on the 
treatment for youth with gender dysphoria.\35\ The recommendations 
consisted of: defining SRPs (that is, puberty blockers, hormonal 
therapies, and surgical treatment) as ``experimental treatment,'' 
revising national guidelines based on a systematic knowledge summary, 
and consideration for a national registry to improve quality and reduce 
variation in patient treatment.While not banning access to SRPs, 
Norway's public health authorityhas signaled an intention torespond to 
UKOM's concerns with an adjustment to the current treatment 
guidelines.\36\ While also not banning access to SRPs, Denmark has also 
taken a cautious approach to hormone interventions (that is, puberty 
blockers and cross-sex hormones) pending more evidence of its 
beneficial effects becoming available.\37\ Notably, Denmark does not 
offer surgical treatment to children with gender dysphoria before age 
18 as paid for by its national health service.\38\ Other countries that 
have considered or restricted various gender dysphoria treatments for 
children include Italy,\39\ Brazil,\40\ New Zealand,\41\ and 
Australia.\42\
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    \35\ Norwegian Healthcare Investigation Board (Ukom). 
``Pasientsikkerhet for barn og unge med kj[oslash]nnsinkongruens 
[Patient safety for children and adolescents with gender 
incongruence].'' March 2023, https://ukom.no/rapporter/pasientsikkerhet-for-barn-og-unge-med-kjonnsinkongruens/sammendrag.
    \36\ Block, Jennifer. ``Norway's guidance on paediatric gender 
treatment is unsafe, says review,'' BMJ (Clinical research ed.) vol. 
380 697, 23 Mar. 2023, doi:10.1136/bmj. p697.
    \37\ Hansen, Mette Vinther et al., ``Sundhedsfaglige tilbud til 
b[oslash]rn og unge med k[oslash]nsubehag [Healthcare services for 
children and adolescents with gender dysphoria],'' Ugeskrift for 
Laeger [The Journal of the Danish Medical Association] 3 July 2023, 
https://ugeskriftet.dk/videnskab/sundhedsfaglige-tilbud-til-born-og-unge-med-konsubehag.
    \38\ Hansen, Mette Vinther et al., ``Sundhedsfaglige tilbud til 
b[oslash]rn og unge med k[oslash]nsubehag [Healthcare services for 
children and adolescents with gender dysphoria],'' Ugeskrift for 
Laeger [The Journal of the Danish Medical Association] 3 July 2023, 
https://ugeskriftet.dk/videnskab/sundhedsfaglige-tilbud-til-born-og-unge-med-konsubehag.
    \39\ Armellini, Alvise. ``Italy moves to tighten controls on 
gender-affirming medical care for minors.'' Reuters. 5 Aug. 2025. 
https://www.reuters.com/business/healthcare-pharmaceuticals/italy-moves-tighten-controls-gender-affirming-medical-care-minors-2025-08-05.
    \40\ AFP. ``Brazil prohibits hormone therapy for transgender 
minors.'' MSN News. 17 Apr. 2025. https://www.msn.com/en-in/news/other/brazil-prohibits-hormone-therapyfor-transgender-minors/ar-AA1D66l7.
    \41\ Corlett, Eva. ``New Zealand Bans Puberty Blockers for Young 
Transgender People.'' The Guardian, Guardian News and Media, 19 Nov. 
2025, https://www.theguardian.com/world/2025/nov/19/new-zealand-bans-new-prescriptions-of-puberty-blockers-for-young-transgender-people.
    \42\ Australian Associated Press. ``Queensland halts 
prescription of puberty blockers and hormones for children with 
gender dysphoria.'' The Guardian, 28 Jan. 2025. https://www.theguardian.com/australia-news/2025/jan/28/queensland-halts-prescription-of-puberty-blockers-and-hormones-for-children-with-gender-dysphoria.
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c. Medical Professional Societies Supporting SRPs
    We are aware that major medical organizations \43\ (including the 
American Medical Association (AMA),\44\ the American Academy of 
Pediatrics (AAP),\45\ and the American Psychological Association 
46 47) have issued statements supporting access to SRPs, 
including for children. The most influential sources of clinical 
guidance for treating pediatric gender dysphoria in the U.S. are the 
WPATH and the ES clinical practice guidelines and the AAP guidance 
document.\48\ We reviewed

[[Page 59468]]

each of these documents and agree with the HHS Review that discusses 
the conclusions of a recent systematic review of international 
guideline quality by researchers at the University of York (the York 
Appraisal) that found all three documents are very low quality and 
should not be implemented.\49\
---------------------------------------------------------------------------

    \43\ Advocates For Trans Equality. ``Medical Organization 
Statements.'' A4TE's Trans Health Project, https://transhealthproject.org/resources/medical-organization-statements/.
    \44\ ``Clarification of Evidence-Based Gender-Affirming Care H-
185.927,'' American Medical Association Policy Finder, American 
Medical Association, 2024, https://policysearch.ama-assn.org/policyfinder/detail/%22Clarification%20of%20Evidence-Based%20Gender-Affirming%20Care%22?uri=%2FAMADoc%2FHOD-185.927.xml.
    \45\ Alyson Sulaski Wyckoff, ``AAP continues to support care of 
transgender youths as more states push restrictions,'' AAP News, 6 
Jan. 2022, https://publications.aap.org/aapnews/news/19021/AAP-continues-to-support-care-of-transgender.
    \46\ ``APA adopts groundbreaking policy supporting transgender, 
gender diverse, nonbinary individuals,'' American Psychological 
Association, released February 28, 2024, https://www.apa.org/news/press/releases/2024/02/policy-supporting-transgender-nonbinary.
    \47\ ``Criminalizing Gender Affirmative Care with Minors,'' 
American Psychological Association, accessed September 2, 2025, 
https://www.apa.org/topics/lgbtq/gender-affirmative-care.
    \48\ The American Academy of Pediatrics' (AAP) 2018 Policy 
Statement was reaffirmed in 2023 (Rafferty et al., 2018); the 
Endocrine Society's (ES) published in 2017 represents the most 
recent published version (Hembree et al., 2017); the World 
Professional Association for Transgender Health's (WPATH) most 
recent clinical practice guideline is Standards of Care, Version 8 
(SOC-8) (Coleman et al., 2022).
    \49\ HHS Review pg. 141.
---------------------------------------------------------------------------

    As the HHS Review notes regarding the role of medical organizations 
in the treatment of pediatric gender medicine:
    ``U.S. medical associations played a key role in creating a 
perception that there is professional consensus in support of pediatric 
medical transition. This apparent consensus, however, is driven 
primarily by a small number of specialized committees, influenced by 
WPATH. It is not clear that the official views of these associations 
are shared by the wider medical community, or even by most of their 
members. There is evidence that some medical and mental health 
associations have suppressed dissent and stifled debate about this 
issue among their members.'' \50\
---------------------------------------------------------------------------

    \50\ U.S. Department of Health and Human Services (HHS). 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report, pg. 15.
---------------------------------------------------------------------------

    The Endocrine Society (ES) issued clinical practice guidelines in 
2017 entitled ``Endocrine Treatment of Gender-Dysphoric/Gender-
Incongruent Persons.'' \51\ As the HHS Review notes:
---------------------------------------------------------------------------

    \51\ Wylie C. Hembree et al. ``Endocrine Treatment of Gender-
Dysphoric/Gender-Incongruent Persons: An Endocrine Society Clinical 
Practice Guideline,'' The Journal of Clinical Endocrinology & 
Metabolism 102, no. 11 (2017): 3869-3903, https://doi.org/10.1210/jc.2017-01658.
---------------------------------------------------------------------------

    ``In WPATH and ES guidelines, the principal goal of CSH 
administration is to induce physical characteristics typical of the 
opposite sex. When hormone levels rise beyond the typical reference 
range for a person's sex, they are considered supraphysiologic. ES 
guidelines suggest that the sex an individual identifies as--as opposed 
to their biological sex--should determine the target reference range 
for hormonal concentrations. Critics have argued that perceived 
identity does not alter physiological processes and that such a belief 
can result in inappropriate and potentially dangerous hormone dosing.'' 
\52\
---------------------------------------------------------------------------

    \52\ U.S. Department of Health and Human Services (HHS). 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report, Pg. 124.
---------------------------------------------------------------------------

    The HHS Review states:
    ``The ES 2017 guideline, which used the GRADE [Grading of 
Recommendations Assessment, Development and Evaluation] framework, has 
been criticized for making strong recommendations for hormonal 
interventions in the setting of a weak evidence base. Notably, none of 
the systematic reviews that supported the ES guidelines were based on 
outcomes for children or adolescents. The ES recommendation to initiate 
puberty blockade using gonadotropin-releasing hormone agonists was 
derived by putting a higher value on achieving a ``satisfactory 
physical appearance'' while putting the lowest value on avoiding 
physical harms. The ES recommendation for the initiation of cross-sex 
hormones no earlier than age 16 was justified by placing a higher value 
on adolescent's purported ability to meaningfully consent to cross-sex 
hormones (CSH) and placing a lower value on avoiding harm from 
potentially prolonged pubertal suppression.'' \53\
---------------------------------------------------------------------------

    \53\ U.S. Department of Health and Human Services (HHS) 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report, Pg. 147.
---------------------------------------------------------------------------

    As explained in Chapter 9 of HHS Review, the guidelines issued by 
the World Professional Association for Transgender Health (WPATH) 
``have been rated among the lowest in quality and have not been 
recommended for implementation by systematic reviews (SRs) of 
guidelines.'' \54\ As the HHS Review points out: ``Despite their lack 
of trustworthiness, for more than a decade WPATH guidelines have served 
as the foundation of the healthcare infrastructure for gender dysphoric 
(GD) youth in the United States. The WPATH Standards of Care guidelines 
are embedded in nearly all aspects of healthcare including clinical 
education, delivery of care, and reimbursement decisions by private and 
public insurers.'' \55\ In 2022, WPATH issued guidelines entitled 
``Standards of Care for the Health of Transgender and Gender Diverse 
People, Version 8'' (SOC-8).\56\ These guidelines relaxed eligibility 
criteria for children to access sex-rejecting procedures and ultimately 
recommends that adolescents wishing to undergo sex-rejecting procedures 
receive them. Besides the problems identified in systematic reviews of 
international guidelines, as the HHS Review states, ``in the process of 
developing SOC-8, WPATH suppressed systematic reviews its leaders 
believed would undermine its favored treatment approach. SOC-8 
developers also violated conflict of interest management requirements 
and eliminated nearly all recommended age minimums for medical and 
surgical interventions in response to political pressures.'' \57\ The 
HHS Review goes on to explain: ``The recommendations are couched in 
cautious-sounding language, stating that GD should be ``sustained over 
time,'' particularly before administering CSH. However, no clear 
standard is set; the only guidance offered is the vague and clinically 
meaningless phrase ``several years'', leaving critical decisions open 
to broad and subjective interpretation.\58\
---------------------------------------------------------------------------

    \54\ U.S. Department of Health and Human Services (HHS) 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report, pg. 157.
    \55\ U.S. Department of Health and Human Services (HHS) 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report, pg. 157.
    \56\ E. Coleman et al., ``Standards of Care for the Health of 
Transgender and Gender Diverse People, Version 8.'' International 
Journal of Transgender Health, vol. 23, suppl. 1, 2022, pp. S1-S259. 
Taylor & Francis Online, https://doi.org/10.1080/26895269.2022.2100644.
    \57\ U.S. Department of Health and Human Services (HHS) 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report, Pg. 14.
    \58\ U.S. Department of Health and Human Services (HHS) 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report, Pg. 165.
---------------------------------------------------------------------------

    Regarding the WPATH guidelines, the HHS review states:
    ``On the surface, WPATH SOC-8 might appear to recommend a cautious 
approach toward assessment. Mental health providers are to conduct a 
``comprehensive biopsychosocial assessment'' prior to initiating 
medical interventions in order ``to understand the adolescent's 
strengths, vulnerabilities, diagnostic profile, and unique needs to 
individualize their care.'' \59\At the same time, however, WPATH 
recommends that clinicians use the International Classification of 
Diseases (ICD-11) diagnosis of ``Gender Incongruence of Adolescence and 
Adulthood,'' which, unlike the DSM-5 diagnosis of ``Gender Dysphoria,'' 
requires only ``marked and persistent incongruence between an 
individual's experienced gender and the assigned sex.'' \60\ Because 
SOC-8 defines transgender in a similar way (``people whose gender 
identities and/or gender expressions are not what is typically

[[Page 59469]]

expected for the sex to which they were assigned at birth'') and 
provides no meaningful distinction between this meaning of transgender 
and gender non-conformity, SOC-8 effectively recognizes transgender 
identification as a medical condition justifying medical 
interventions.'' \61\
---------------------------------------------------------------------------

    \59\ E. Coleman et al., ``Standards of Care for the Health of 
Transgender and Gender Diverse People, Version 8.'' International 
Journal of Transgender Health, vol. 23, suppl. 1, 2022, pp. S1-S259. 
Taylor & Francis Online, https://doi.org/10.1080/26895269.2022.2100644.
    \60\ U.S. Department of Health and Human Services (HHS) 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report, Pg. 194.
    \61\ U.S. Department of Health and Human Services (HHS) 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report, Pg. 194-195.
---------------------------------------------------------------------------

    While AMA and the AAP have not issued their own treatment 
guidelines, they support the ES and WPATH guidelines, as discussed 
previously in this proposed rule. AAP issued a policy statement in 2018 
supporting the use of puberty blockers, cross-sex hormones, and 
surgeries for minors.\62\ In support of sex-rejecting surgeries, AAP 
stated that while ``current protocols [(ES, WPATH)] typically reserve 
surgical interventions for adults, they are occasionally pursued during 
adolescence on a case-by-case basis, considering the necessity and 
benefit to the adolescent's overall health and often including 
multidisciplinary input from medical, mental health, and surgical 
providers as well as from the adolescent and family.'' The AAP 
reaffirmed its policy statement in 2023 but also stated that it was 
conducting its own review of the evidence and guideline development--
which still has not been released.\63\
---------------------------------------------------------------------------

    \62\ Rafferty, Jason, et al. ``Ensuring Comprehensive Care and 
Support for Transgender and Gender-Diverse Children and 
Adolescents.'' Pediatrics, vol. 142, no. 4, 1 Oct. 2018, 
doi:10.1542/peds.2018-2162.
    \63\ Wyckoff, Alyson Sulaski. ``AAP reaffirms gender-affirming 
care policy, authorizes systematic review of evidence to guide 
update.'' AAP News, August 4, 2023, https://publications.aap.org/aapnews/news/25340/AAP-reaffirms-gender-affirming-care-policy.
---------------------------------------------------------------------------

    Regarding the AAP policy statement, the HHS Review states:
    ``The AAP 2018 policy statement is not technically a CPG [clinical 
practice guideline] but has been widely cited in the U.S. as 
influential in establishing how pediatricians respond to children and 
adolescents with GD [gender dysphoria].\64\ Because the document offers 
extensive clinical recommendations regarding every step of PMT--from 
social transition to PBs [puberty blockers], CSH [cross-sex hormones], 
and surgery--the York team assessed the trustworthiness of the AAP 
guidance using the same criteria they applied to CPGs. Using the AGREE 
II criteria, the AAP policy statement received the second-lowest 
average score among all international guidelines: 2 out of 7. As noted 
in Chapter 2, the AAP policy statement's use of ``gender diverse'' 
casts a very wide net regarding which patients the organization 
considers eligible for medical intervention. The statement has been 
heavily criticized in peer-reviewed articles, which have pointed out 
that it is rife with referencing errors and inaccurate citations. 
Despite persistent advocacy among its members, who have petitioned the 
organization to release updated, evidence-based guidance for treating 
pediatric GD, the organization chose to reaffirm their policy statement 
in 2023.'' \65\
---------------------------------------------------------------------------

    \64\ U.S. Department of Health and Human Services (HHS) 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report, Pg. 148.
    \65\ U.S. Department of Health and Human Services (HHS) 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report, Pg. 148, 149.
---------------------------------------------------------------------------

    We solicit comment of any published peer-reviewed findings that 
measure the effects of restrictions similar to those in this proposed 
rule on insurers, providers, and patients in international settings as 
well as the U.S.
3. U.S. Legal Landscape Regarding Sex-Rejecting Procedures
    The United States has seen a high level of activity both at the 
State level and within the judicial system on this topic in recent 
years.
a. U.S. State Laws
    Several States and territories have adopted laws reflecting their 
views of the evidence on SRPs for children with 28 restricting and 15 
protecting this treatment. As of August 2025, 27 States and one 
territory have laws limiting or prohibiting some or all SRPs for 
children.\66\ These include Alabama, Arkansas, Arizona, Florida, 
Georgia, Iowa, Idaho, Indiana, Kansas, Kentucky, Louisiana, Missouri, 
Mississippi, Montana, North Carolina, New Hampshire, North Dakota, 
Nebraska, Ohio, Oklahoma, Puerto Rico, South Carolina, South Dakota, 
Tennessee, Texas, Utah, West Virginia, and Wyoming. Of these, 2 States' 
laws or policies (Montana and Arkansas) are pending resolution of 
ongoing legal challenges (as of August 2025).
---------------------------------------------------------------------------

    \66\ Dawson, L., Kates, J. ``Policy Tracker: Youth Access to 
Gender Affirming Care and State Policy Restrictions.'' KFF, 21 Aug. 
2025 [24 Nov. 2025], https://www.kff.org/other/dashboard/gender-affirming-care-policy-tracker.
---------------------------------------------------------------------------

    States with such laws or policies apply them to varying age ranges. 
Twenty-five States prohibit certain SRPs in individuals under the age 
of 18. Two States (Nebraska and Alabama) prohibit them for those under 
the age of 19. Puerto Rico prohibits such procedures for those under 
the age of 21.
    Which SRPs (that is puberty blockers, hormone therapy, and surgery) 
are banned for children varies by State. As of August 2025, 25 States 
have laws that prohibit access to puberty blockers, hormone therapies, 
and gender dysphoria related surgeries for children. Two States (New 
Hampshire and Arizona) have restrictions on surgery (but permit 
endocrine SRPs) for this population. No State bans only medications 
without also banning surgical procedures.\67\
---------------------------------------------------------------------------

    \67\ American Psychological Association. ``Navigating the legal 
landscape: FAQs on gender affirming care for minors.'' American 
Psychological Association, 28 Jun. 2024, https://www.apaservices.org/practice/legal/managed/legal-landscape-gender-care-minors.
---------------------------------------------------------------------------

    All the States and the territory with restrictions provide 
exceptions to the law/policies. The most common exceptions include:
     Children born with medically verifiable disorder of sex 
development. This allows treatment for children who are born with 
medical conditions that affect their sexual development. These are rare 
conditions where a child's reproductive or sexual anatomy does not 
develop in typical ways due to genetic, hormonal, or other factors that 
can be medically verified.
     Children who have been diagnosed with a disorder of sexual 
development by a physician through genetic or biochemical testing.
     Treatment for any infection, injury, disease, or disorder 
that has been caused or exacerbated by the performance of SPRs.
     Children suffering from physical disorders, physical 
injuries, or physical illnesses that would otherwise place the children 
in danger of death or impairment of bodily function.
    We note that 12 States provide tapering off periods for patients 
who started puberty blockers or hormones before enactment of the 
restriction, with some specifying specific dates (for example, in South 
Carolina services cannot go beyond January 31, 2025) and others 
specifying a period of time from the date of enactment (ranging between 
6 months and 1 year). Ten States have grandfather clauses primarily 
allowing children who were already receiving treatment to continue 
receiving it indefinitely.
    Conversely, 14 States and the District of Columbia have shield laws 
protecting SRPs, and three other States have E.O.s protecting these 
procedures.\68\ These

[[Page 59470]]

States are (not including the District of Columbia): Arizona,\69\ 
California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, 
Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oregon, 
Rhode Island, Vermont, and Washington. Shield laws and State E.O.s 
often describe SRPs broadly, including medications and procedures, and 
include these under broader definitions of protected healthcare 
activities. These laws often protect providers from adverse action by 
medical malpractice insurers and licensure boards and allow for their 
address to remain confidential. One State (Maine) has a shield law that 
allows children 16 and over to receive hormone therapy when the 
guardian has refused SRPs. Four States explicitly provide child abuse 
and child custody protections for parents who supported their children 
in receiving specified procedures. Four State shield laws and E.O.s 
have requirements for SRPs to be covered under health plans. Arizona 
requires coverage for State employee health plans. Illinois, Oregon, 
and Vermont require some level of SRPs coverage by all health insurance 
providers. Vermont includes an exception for services that do not 
comply with Federal law.
---------------------------------------------------------------------------

    \68\ ``Equality Maps: Transgender Healthcare `Shield' Laws.'' 
Movement Advancement Project, n.d., accessed 11 August 2025, https://www.lgbtmap.org/equality-maps/healthcare/trans_shield_laws.
    \69\ Arizona banned SRPs for transgender minors in 2022, but in 
2023 the governor issued an executive order with ``shield'' style 
protections for SRPs that are still legal in the State.
---------------------------------------------------------------------------

b. United States Supreme Court
    Recently, the Supreme Court in United States v. Skrmetti, 145 S. 
Ct. 1816 (2025) upheld Tennessee's law (referred to as Senate Bill 1; 
SB 1) banning certain surgical and chemical interventions for children 
with gender dysphoria, in litigation challenging that law under the 
Equal Protection Clause of the U.S. Constitution. SB1 prohibits a 
healthcare provider from performing medical procedures, including 
surgery, and prescribing puberty blockers, for a child for the purpose 
of enabling the child to identify with a purported identity 
inconsistent with the child's sex. At the same time, SB1 allows 
healthcare providers to perform medical procedures for children if the 
procedure is to treat a child's congenital defect, precocious puberty, 
disease, or physical injury. On June 18, 2025, the Court found that 
SB1's prohibition of certain medical procedures for children with 
gender dysphoria incorporates classifications based on age and medical 
use--not the child's sex. As a result of these classifications based on 
age and medical use, the Court held that SB1 was not subject to 
heightened scrutiny under the Equal Protection Clause of the Fourteenth 
Amendment and the law satisfied so called ``rational basis'' review.
4. CMS Actions
    The proposed rule is animated by significant child safety concerns 
when SRPs are used for certain medical uses--that is to align a child's 
physical appearance or body with an asserted identity that differs from 
the child's biological sex. CMS published a formal guidance letter to 
State Medicaid Directors regarding SRPs on April 11, 2025, reminding 
States of their responsibility to ensure that Medicaid payments are 
consistent with quality of care and that covered services are provided 
in a manner consistent with the best interest of recipients.\70\ In 
addition, the Administrator of CMS sent a letter issued on May 28, 
2025, to a number of hospitals addressing significant issues concerning 
quality standards and specific procedures affecting children. The 
letter requested that the recipient hospitals provide CMS with copies 
of certain hospital policies and procedures on the adequacy for 
informed consent protocols for children with gender dysphoria, 
including how hospitals determine that children are capable of making 
these potentially life changing decisions and when parental consent is 
required; describe any changes to clinical practice guidelines and 
protocols that the institution plans to enact in light of the recent 
comprehensive review and guidance released by the Department; provide 
CMS with medical evidence of any adverse events related to these 
procedures, particularly in children who later sought to detransition; 
and complete financial data for all pediatric SRPs performed at the 
institution and paid, in whole or in part, by the Federal 
Government.\71\
---------------------------------------------------------------------------

    \70\ Department of Health & Human Servies, Centers for Medicaid 
& CHIP Services. ``Puberty blockers, cross-sex hormones, and surgery 
related to gender dysphoria.'' Received by State Medicaid Director, 
7500 Security Blvd. Mail Stop S2-26-12, 11 Apr. 2025, Baltimore, 
Maryland, https://www.cms.gov/files/document/letter-stm.pdf.
    \71\ Department of Health & Human Services, Centers for Medicare 
and Medicaid Services. ``Urgent Review of Quality Standards and 
Gender Transition Procedures.'' 28 May 2025, Washington, DC, 
www.cms.gov/files/document/hospital-oversight-letter-generic.pdf.
---------------------------------------------------------------------------

    In addition, on May 28, 2025, Secretary Kennedy wrote to hospitals, 
health care providers, health care risk managers, and State medical 
boards across the nation, asking them to read the HHS Review, and to 
make necessary updates to their ``treatment protocols and training for 
care for children and adolescents with gender dysphoria to protect them 
from these harmful interventions.'' \72\
---------------------------------------------------------------------------

    \72\ U.S. Department of Health & Human Services [@HHSGov]. X 
(formerly Twitter), 28 May 2025, https://x.com/HHSGov/status/1927791449476567043.
---------------------------------------------------------------------------

    These letters reaffirmed CMS' and HHS' commitment to following the 
highest standards of care and to adhering closely to the foundational 
principles of medicine, especially relating to doing no harm to 
America's children and in alignment with CMS's obligations to ensure 
baseline quality standards at institutions participating in the 
Medicare and Medicaid programs.

II. Provisions of the Proposed Regulations

    We have undertaken a review of the current hospital health and 
safety standards (known as the CoPs) as well as the latest information 
regarding SRPs in children to ensure hospitals are best protecting the 
health and safety of children. The evidence as presented in the Review 
(see section I.B.2. of this proposed rule) indicates that SRPs lack the 
necessary outcomes data on safety and long-term effectiveness. CMS 
takes very seriously the absence of rigorous scientific data 
demonstrating the safety and effectiveness of SRPs and the considerable 
evidence regarding the risks. Based on this, we believe that certain 
SRPs (namely pharmaceutical and surgical interventions) are not 
consistent with the health and safety of children, given the risk of 
significant (long term) harms, known complications, and weak and 
uncertain evidence of benefits.
    We therefore propose to add a new section to 42 CFR part 482, 
subpart C that would prohibit Medicare and Medicaid-participating 
hospitals from performing sex-rejecting procedures (SRPs) on any child 
(Sec.  482.46(a)). As set out in proposed Sec.  482.46(a)(5), we 
propose to define SRPs as any pharmaceutical or surgical intervention 
that attempts to align an individual's physical appearance or body with 
a stated identity that differs from the individual's sex by either (1) 
intentionally disrupting or suppressing the development of biological 
functions, including primary or secondary sex-based traits or (2) 
intentionally altering an individual's physical appearance or body, 
including removing, minimizing, or permanently impairing the function 
of primary or secondary sex-based traits such as the sexual and 
reproductive organs.

[[Page 59471]]

    We propose at Sec.  482.46(a)(1) through (4) to include several 
additional definitions critical to interpreting the proposal. We 
propose that the term ``child'' be defined as any individual younger 
than 18 years of age. We further propose that the term ``female'' be 
defined as an individual of the sex characterized by a reproductive 
system with the biological function of (at maturity, absent disruption 
or congenital anomaly) producing eggs (ova). We propose that the term 
``male'' be defined as an individual of the sex characterized by a 
reproductive system with the biological function of (at maturity, 
absent disruption or congenital anomaly) producing sperm. Finally, we 
propose that the term ``sex'' is defined as an individual's immutable 
biological classification as either male or female.
    At Sec.  482.46(b), we are proposing exceptions to Sec.  482.46(a) 
to protect the health and safety of children in certain rare and 
exceptional circumstances. Proposed exceptions include:
     Procedures to treat an individual with a 
medically verifiable disorder of sexual development (Sec.  
482.46(b)(1)). This allows treatment for children who are born with 
certain medical conditions that affect their sexual development. These 
are rare conditions where a child's reproductive or sexual anatomy does 
not develop in typical ways due to genetic, hormonal, or other medical 
factors that can be medically verified and documented. Examples include 
a child with external biological sex characteristics that are 
irresolvably ambiguous, such as those born with 46 XX chromosomes with 
virilization, 46 XY chromosomes with under-virilization, or having both 
ovarian and testicular tissue.
     Procedures for purposes other than attempting to 
align an individual's physical appearance or body with an asserted 
identity that differs from the individual's sex (Sec.  482.46(b)(2)). 
This permits procedures that are done for reasons entirely separate 
from changing a child's physical appearance to match a gender identity 
that differs from their biological sex, including procedures for 
children with a physical disorder, injury, or physical illness. In 
other words, the procedure must have a purpose separate from intending 
to change the body to not correspond to one's biological sex.
     Treating Complications (Sec.  482.46(b)(3)). 
This exception allows treatment for any infections, injuries, diseases, 
or other medical disorders that were caused by or made worse by 
previous SRPs. This exception allows physicians or other licensed 
practitioners to treat complications that arise from these procedures.
    While we are proposing certain exceptions, any procedures or 
treatments under these exceptions must still be performed with the 
consent of the child's parent or legal guardian, as currently required 
under the patient rights CoP at Sec.  482.13(b)(2), the medical records 
CoP at Sec.  482.24 (c)(4)(v), the surgical services CoP at Sec.  
482.51(b)(2), and in compliance with applicable State law(s).
Practice of Medicine
    Under Section 1801 of the Act, CMS may not ``exercise any 
supervision or control over the practice of medicine or the manner in 
which medical services are provided, (42 U.S.C. 1395). However, we 
believe that providing the SRPs for children is not healthcare and 
hence are not subsumed under the term of ``the practice of medicine.'' 
Therefore, the proposed rule would not regulate the practice of 
medicine. As the Review notes regarding SRPs, when ``medical 
interventions pose unnecessary, disproportionate risks of harm, 
healthcare providers should refuse to offer them even when they are 
preferred, requested, or demanded by patients.'' \73\ As the Review 
states, ``in the domain of pediatrics, these norms limit the authority 
not only of patients (who in any case lack full decision-making 
capacity) but of parents as well.'' \74\ The first obligation of the 
physician, under the Hippocratic Oath, originating in the fourth 
century BC, is to first do no harm, as the purpose of the practice of 
medicine is to heal. SRPs introduce a unique set of iatrogenic harms, 
especially, ``surgeries to remove healthy and functioning organs.'' 
\75\ The Review states: ``to discharge their duties of nonmaleficence 
and beneficence, clinicians must ensure, insofar as reasonably 
possible, that any interventions they offer to patients have clinically 
favorable risk/benefit profiles relative to the set of available 
alternatives, which includes doing nothing.'' \76\ As related 
previously in this proposed rule, the risk-benefit profile of these 
procedures for children is extremely poor. At the same time,'' the 
Review notes, ``there is increasing recognition of the risk and harms 
associated'' with pediatric sex-rejecting procedures, including 
``possible outcomes, such as impaired cognitive function, greater 
susceptibility to hormone-sensitive cancers, cardiac disease, reduced 
bone density, sexual dysfunction, infection, and infertility [that] are 
objectively detrimental to health'' The Review concludes that``[s]uch 
medical harms, or plausible risks thereof, should not be imposed on 
children or adolescents in the absence of a reasonable expectation of 
proportionate medical benefit.'' \77\
---------------------------------------------------------------------------

    \73\ U.S. Department of Health and Human Services (HHS) 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov, 2025. 
https://opa.hhs.gov/gender-dysphoria-report Pg. 15.
    \74\ U.S. Department of Health and Human Services (HHS) 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report Pg. 225.
    \75\ U.S. Department of Health and Human Services (HHS). 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025. 
https://opa.hhs.gov/gender-dysphoria-report, Pg. 128.
    \76\ U.S. Department of Health and Human Services (HHS) 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025, 
https://opa.hhs.gov/gender-dysphoria-report, Pg. 226.
    \77\ U.S. Department of Health and Human Services (HHS) 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs, 19 Nov. 2025, 
https://opa.hhs.gov/gender-dysphoria-report Pg. 227-228.
---------------------------------------------------------------------------

    There are other considerations for why the regulations proposed in 
this rule do not regulate the practice of medicine. A person's body 
(including its organs, organ systems, and processes natural to human 
development like puberty) are either healthy or unhealthy based on 
whether they are operating according to their biological functions. 
Organs or organ systems do not become unhealthy simply because the 
individual may experience psychological distress relating to his or her 
sexed body. For this reason, removing a patient's breasts as a 
treatment for breast cancer is fundamentally different from performing 
the same procedure solely to alleviate mental distress arising from 
gender dysphoria. The former procedure aims to restore bodily health 
and to remove cancerous tissue. In contrast, removing healthy breasts 
or interrupting normally occurring puberty to ``affirm'' one's ``gender 
identity'' involves the intentional destruction of healthy biological 
functions. This is not health care and hence imposing restrictions as 
this rule proposes does not limit the practice of medicine. The Review 
further notes there is lack of clarity about what SRPs' fundamental 
aims are, unlike the broad consensus about the purpose of medical 
treatments for conditions like appendicitis, diabetes, or severe 
depression.\78\ Rather as discussed above, these procedures lack strong 
evidentiary foundations, and our

[[Page 59472]]

understanding of long-term health impacts is limited and needs to be 
better understood. Nothing in this proposed rule prohibits or permits 
the basic legality of SRPs. Rather, this proposed rule would ensure 
patient safety and medical integrity. CMS would no longer directly or 
indirectly support harm to children by allowing facilities that engage 
in such harmful practices to receive Medicare and Medicaid funds.
---------------------------------------------------------------------------

    \78\ U.S. Department of Health and Human Services (HHS). 
``Treatment for Pediatric Gender Dysphoria, Review of Evidence and 
Best Practices.'' HHS Office of Population Affairs,19 Nov. 2025, 
https://opa.hhs.gov/gender-dysphoria-report, Pg. 24-26.
---------------------------------------------------------------------------

III. Collection of Information Requirements

    Under the Paperwork Reduction Act of 1995, we are required to 
provide 60-day notice in the Federal Register and solicit public 
comment before a collection of information requirement is submitted to 
the Office of Management and Budget (OMB) for review and approval. To 
fairly evaluate whether an information collection should be approved by 
OMB, section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995 
requires that we solicit comment on the following issues:
     The need for the information collection and its usefulness 
in carrying out the proper functions of our agency.
     The accuracy of our estimate of the information collection 
burden.
     The quality, utility, and clarity of the information to be 
collected.
     Recommendations to minimize the information collection 
burden on the affected public, including automated collection 
techniques.
    We are soliciting public comment on each of these issues for the 
following section of this document that contains information collection 
requirements (ICRs).

A. Hospital Notifications to Patients

    Proposed Sec.  482.46 would require that hospitals not perform sex-
rejecting procedures (SRPs) on children, barring certain exceptions. We 
expect that hospitals that are currently performing these procedures on 
children would need to inform the child and their parents or legal 
guardian who are seeking such procedures that they no longer perform 
such procedures. Based on our experience, we expect that the child's 
physician or the licensed practitioner providing this care would spend 
an average of 30 minutes writing each notification. In addition, they 
would spend 30 minutes answering any questions from the child and their 
parents or legal guardian. This leads to a total burden of 1 hour per 
patient.
    To calculate the total provider burden across all patients, we 
first examined State laws and found that 25 States have active laws 
restricting SRPs.\79\ Given these State laws that already prohibit 
these procedures, we do not expect that physicians or licensed 
practitioners in these States would be writing a significant number of 
notifications. While acknowledging that some children living in these 
States may be traveling to States that permit SRPs for children, we do 
not expect that this is a large number of children for two reasons. 
First, across States with these restrictions, nearly 45 percent of 
children were enrolled in Medicaid or CHIP as of March 2025 and these 
programs would not fund SRPs outside the State.\80\ Second, a recent 
study showed that across States with restrictions on SRPs, the average 
driving time to the nearest clinic in a State without restrictions was 
5.3 hours, with the average time in Florida reaching 9 hours.\81\ As 
such, we base our estimate on the number of children affected for 
children in States that currently do not have restrictions but seek 
comments on this assumption.
---------------------------------------------------------------------------

    \79\ Dawson, L., Kates, J. ``KFF Analysis of State Laws and 
Policies Restricting Minor Access to Gender Affirming Care.'' KFF, 
24 Nov. 2025, https://www.kff.org/other/dashboard/gender-affirming-care-policy-tracker/.
    \80\ Centers for Medicare & Medicaid Servies. ``State Medicaid 
and CHIP Applications, Eligibility Determinations, and Enrollment 
Data.'' Data.Medicaid.gov, https://data.medicaid.gov/dataset/6165f45b-ca93-5bb5-9d06-0db29c692a360/data. Accessed 6 Aug.2025.
    \81\ Borah, Luca et. al. ``State Restrictions and Geographic 
Access to Gender-Affirming Care for Transgender Youth.'' JAMA, vol. 
330,4 (2023): 375-378. doi: 10.1001/jama.2023.11299.
---------------------------------------------------------------------------

    The second step was to identify the number of individuals under the 
age of 18 who live in States that allow SRPs. We combined information 
on State restrictions with Census Bureau population estimates \82\ and 
found that there are approximately 8,674,717 females and 9,165,563 
males between the ages of 10 and 17 living in States that do not have 
active laws restricting SRPs. While acknowledging that children younger 
than 10 may be receiving SRPs, we believe this is a reasonable estimate 
of the population affected by the proposed requirement.
---------------------------------------------------------------------------

    \82\ U.S. Census Bureau, U.S. Department of Commerce. ``Age and 
Sex.'' American Community Survey, ACS 1-Year Estimates Subject 
Tables, Table S0101, https://data.census.gov/table/ACSST1Y2023.S0101?q=population+by+age+by+state. (Accessed 26 Jul. 
2025).
---------------------------------------------------------------------------

    The third step was to identify the number of individuals under 18 
years of age who may be receiving SRPs. A recent study \83\ found that 
among children between the ages of 8 and 17 covered by private 
insurance, males received puberty blockers and hormones at a rate of 
15.22 per 100,000 and 25.34 per 100,000, respectively. Meanwhile, 
females received puberty blockers and hormones at a rate of 20.81 per 
100,000 and 49.9 per 100,000, respectively. Applying these rates to the 
number of males and females in States without active laws restricting 
SRPs,\84\ we estimate that there are approximately 6,651 individuals 
receiving hormones and 3,200 individuals receiving puberty blockers for 
a total of 9,851 individuals. As the authors note, these rates are more 
likely to be generalizable to patients with private insurance in large 
care plans and they expect lower rates for those utilizing Medicaid and 
in less comprehensive care plans. Another study \85\ used national data 
to estimate the rate of sex rejecting surgical procedures and found 
that in 2019, there were approximately 85 sex-rejecting surgical 
procedures for children with a gender dysphoria diagnosis. The same as 
our estimates for the number of children receiving puberty blockers and 
hormones, this estimate is for insured patients and there may be lower 
rates for those utilizing Medicaid and in less comprehensive care 
plans. Given the overlap in treatment for some patients who may receive 
both surgical procedures and hormones, we estimate that a maximum of 
9,851 individuals under the age of 18 are receiving SRPs.
---------------------------------------------------------------------------

    \83\ Hughes Landon D. et al. ``Gender-Affirming Medications 
Among Transgender Adolescents in the US, 2018-2022.'' JAMA 
Pediatrics, vol. 179, 3, (2025): p.342-344. doi:10.1001/
jamapediatrics.2024.6081.
    \84\ Dawson, L., Kates, J. ``KFF Analysis of State Laws and 
Policies Restricting Minor Access to Gender Affirming Care.'' KFF, 
24 Nov. 2025, https://www.kff.org/other/dashboard/gender-affirming-care-policy-tracker/.
    \85\ Dai Dannie, et al. ``Prevalence of Gender-Affirming 
Surgical Procedures Among Minors and Adults in the US.'' JAMA 
Network Open, vol. 7, 6, 27 Jun. 2024, doi:10.1001/
jamanetworkopen.2024.18814.
---------------------------------------------------------------------------

    While hospitals often prescribed puberty blockers and hormone 
replacement therapy as part of sex-rejecting procedures, primary care 
providers and endocrinologists outside of hospitals, who would not be 
affected by these requirements, can also prescribe these treatments. A 
recent analysis found that approximately 52 percent of primary care 
physicians were not affiliated with a hospital.\86\ We do not know the 
share of children receiving puberty blockers or hormone replacement 
therapy outside the hospital setting and, therefore, would not need to 
receive notification that

[[Page 59473]]

SRPs were no longer offered. Assuming that 25 percent of children are 
receiving care from primary care physicians or endocrinologists and 
that 52 percent of these providers are outside the hospital system, 
then 8,570 of the 9,851 children receiving treatment as identified 
above would need to receive notices and have discussions with their 
treating physician or licensed practitioner. We seek comments on data 
sources on the number of children receiving puberty blockers or hormone 
replacement therapy outside the hospital setting who would not be 
affected by the proposed requirement.
---------------------------------------------------------------------------

    \86\ Singh, Yashaswini et al. ``Growth of Private Equity and 
Hospital Consolidation in Primary Care and Price Implications.'' 
JAMA Health Forum vol. 6,1 e244935. 3 Jan. 2025, doi:10.1001/
jamahealthforum.2024.4935.
---------------------------------------------------------------------------

    To estimate the total cost for this requirement, we assumed that a 
physician would write these notices. We calculated the physician's 
hourly rate by doubling the national mean salary for physicians 
(occupation code 29-1210) using the BLS' May 2024 National Occupational 
Employment and Wage Estimates for hospitals (NAICS code 622000),\87\ 
leading to an hourly cost of $226.18 ($113.09 x 2). We doubled the mean 
salary since the BLS data do not include overhead costs and fringe 
benefits. The HHS wide guidance on preparation of regulatory and 
paperwork burden estimates states that doubling salary costs is a good 
approximation for including these overhead and fringe benefit costs. 
Utilizing these data, in Table 1, we estimate that this requirement 
would cost $1,938,363. We seek comments on the estimated time burden 
for physicians to provide written notices to their patients that the 
hospital is no longer providing SRPs.
---------------------------------------------------------------------------

    \87\ U.S. Bureau of Labor Statistics. ``Occupational Employment 
and Wage Statistics (OEWS) Tables.'' Occupational Employment and 
Wage Statistics, BLS.gov, May 2024, https://www.bls.gov/oes/tables.htm. Accessed 23 Jul. 2025.

                                                        Table 1--Notification Letters to Patients
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Average hourly     Hours per        Number of                        Total hourly
                           Employee type                                   rate           patient          patients        Total cost          cost
                                                                                (a)              (b)              (c)   (d = a x b x c)     (e = b x c)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Physician..........................................................         $226.18                1            8,570       $1,938,363            8,570
--------------------------------------------------------------------------------------------------------------------------------------------------------

B. Updating Hospital Policies and Procedures

    In addition to sending out notices to patients that they are no 
longer providing SRPs, hospitals will need to update their policies and 
procedures to ensure that they align with the proposed requirements.
    To estimate the cost for hospitals to update their policies and 
procedures, we used data from the BLS' May 2024 National Occupational 
Employment and Wage Estimates for hospitals (NAICS code 622000),\88\ 
and doubled the mean salary since the BLS data do not include overhead 
costs and fringe benefits. Based on our experience, we estimate that 
updating the hospital's policies and procedures related to SRPs for 
children would take 3 hours of work from a physician (occupation code 
29-1210) at $678.54 ($226.18 x 3 hours) and a member of the clerical 
staff (occupation code 43-6010) at $143.40 ($47.80 x 3 hours), and 3 
hours of work from a lawyer (occupation code 23-1010) at $650.16 
($216.72 x 3 hours) to review the updated policies and procedures to 
ensure that they meet the legal guidelines. This leads to a total per 
facility cost of $1472.10.
---------------------------------------------------------------------------

    \88\ U.S. Bureau of Labor Statistics. ``Occupational Employment 
and Wage Statistics (OEWS) Tables.'' Occupational Employment and 
Wage Statistics, BLS.gov, May 2024, https://www.bls.gov/oes/tables.htm. Accessed 23 Jul. 2025.
---------------------------------------------------------------------------

    To estimate the number of hospitals that would need to update their 
policies and procedures, we first used the CMS' Q2 2025 Provider of 
Services File--Hospitals & Non-Hospital Facilities dataset and 
identified a total of 4,832 Medicare/Medicaid certified hospitals.\89\ 
We expect that even in States that have active bans on SRPs, some 
hospitals would still need to update their policies and procedures 
since many of these States have exceptions that conflict with the 
requirements in this proposed rule. We recognize, however, that not all 
hospitals offer SRPs for children, and increasingly more hospitals 
nationwide are ending these services.\90\ Given these uncertainties, we 
assume that 75 percent, or 3,624 hospitals would need to update their 
policies and procedures. Using this estimate, we expect that hospitals 
would spend $5,334,890 updating their policies and procedures. We seek 
comments on this estimate, specifically whether there are data sources 
to more accurately estimate the number of hospitals nationwide that 
currently offer SRPs for children.
---------------------------------------------------------------------------

    \89\ Centers for Medicare and Medicaid Services. ``Provider of 
Services File--Hospital & Non-Hospital Facilities, Q2 2025.'' 
Data.CMS.gov, https://data.cms.gov/provider-characteristics/hospitals-and-other-facilities/provider-of-services-file-hospital-non-hospital-facilities/data. Accessed 13 Aug. 2025.
    \90\ Cowan, Jill Cowan. ``Hospitals Are Limiting Gender 
Treatment for Trans Minors, Even in Blue States.'' The New York 
Times, 22 Jul. 2025, https://www.nytimes.com/2025/07/22/us/trump-transgender-healthcare-california-hospitals.html. Accessed 6 Aug. 
2025.

                           Table 2--Cost for Updating Facility Policies and Procedures
----------------------------------------------------------------------------------------------------------------
                                                                 Per hospital                      Total hourly
              Per hospital cost                  Hospitals       hourly cost       Total cost          cost
(a)                                                      (b)              (c)          (a x b)          (b x c)
----------------------------------------------------------------------------------------------------------------
$1,472.10...................................           3,624                9       $5,334,890           32,616
----------------------------------------------------------------------------------------------------------------

    The information collections will be sent to OMB for approval under 
the OMB Control number: 0938-NEW.
    If you comment on this information collection, that is, reporting, 
recordkeeping or third-party disclosure requirements, please submit 
your comments electronically as specified in the ADDRESSES section of 
this proposed rule.
    Comments must be received by the date and time specified in the 
DATES section of this proposed rule.

[[Page 59474]]

IV. Response to Comments

    Because of the large number of public comments we normally receive 
on Federal Register documents, we are not able to acknowledge or 
respond to them individually. We will consider all comments we receive 
by the date and time specified in the DATES section of this preamble, 
and, when we proceed with a subsequent document, we will respond to the 
comments in the preamble to that document.

V. Regulatory Impact Analysis

A. Statement of Need

    Throughout the United States, thousands of children are receiving 
sex-rejecting procedures (SRPs), specifically pharmacological and 
surgical interventions, for gender dysphoria. As outlined in section I. 
and II. of this proposed rule, however, recent HHS and international 
analyses question the efficacy and safety of SRPs in children. To 
protect children's health and safety, we are proposing to prohibit 
hospitals subject to part 482 from performing SRPs on any child with 
certain exceptions to best protect children's health and safety.

B. Overall Impact

    We have examined the impacts of this proposed rule as required by 
Executive Order 12866, ``Regulatory Planning and Review''; Executive 
Order 13132, ``Federalism''; Executive Order 13563, ``Improving 
Regulation and Regulatory Review''; Executive Order 14192, ``Unleashing 
Prosperity Through Deregulation''; the Regulatory Flexibility Act (RFA) 
(Pub. L. 96 354); section 1102(b) of the statute; and section 202 of 
the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4).
    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select those regulatory approaches that 
maximize net benefits (including potential economic, environmental, 
public health and safety, and other advantages; distributive impacts; 
and equity). Section 3(f) of Executive Order 12866 defines a 
``significant regulatory action'' as any regulatory action that is 
likely to result in a rule that may: (1) have an annual effect on the 
economy of $100 million or more or adversely affect in a material way 
the economy, a sector of the economy, productivity, competition, jobs, 
the environment, public health or safety, or State, local, or tribal 
governments or communities; (2) create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) raise novel legal or policy issues arising out of legal 
mandates, or the President's priorities. The Office of Management and 
Budget's (OMB) Office of Information and Regulatory Affairs (OIRA) has 
determined this rulemaking is significant per section 3(f) of Executive 
Order 12866.
    As noted above in Table 1 and Table 2, estimated costs of 
approximately $7.3 million are due to the time that a physician or 
licensed practitioner would spend providing patients with notification 
that the hospital no longer provides these procedures and for hospitals 
to update their policies and procedures related to SRPs for children. 
Below, we estimate additional impacts from the proposed requirement.
1. Costs and Transfers
    We estimated the value of treatments in hospitals that would change 
in response to the proposed requirements using data from a study 
analyzing the per person cost of these treatments based on commercial 
claims data from 1993 to 2019.\91\ This study estimated that for SRPs 
that included testosterone, estrogens and anti-androgens, and GnRH, 
there was an average combined cost to payors of $755 per person in 2019 
dollars. Adjusting for inflation,\92\ this leads to an average cost of 
approximately $909 per patient in 2024 dollars. For surgical 
procedures, there was an average per procedure cost of $28,367 in 2019 
dollars. Adjusting for inflation, this leads to an average cost of 
approximately $34,165 in 2024 dollars. Utilizing our estimate in the 
collection of information section that 8,570 children would be affected 
by our rule and that there are 85 surgical SRPs on children annually, 
we estimate an annual value of $7,790,130 (8,570 patients x $909) for 
non-surgical SRPs and $2,904,025 (85 patients x $34,165) for surgical 
SRPs, for a total annual value of $10,694,155.
---------------------------------------------------------------------------

    \91\ Baker, Kellan, and Arjee Restar. ``Utilization and Costs of 
Gender-Affirming Care in a Commercially Insured Transgender 
Population.'' The Journal of Law, Medicine & Ethics, vol. 50,3 
(2022): 456-470. doi:10.1017/jme.2022.87
    \92\ Bureau of Economic Analysis. ``National Income and Product 
Accounts.'' BEA Interactive Data Application, https://apps.bea.gov/iTable/?reqid=19&step=3&isuri=1&1921=survey&1903=13#eyJhcHBpZCI6MTksInN0ZXBzIjpbMSwyLDMsM10sImRhdGEiOltbIk5JUEFfVGFibGVfTGlzdCIsIjEzIl0sWyJDYXRlZ29yaWVzIiwiU3VydmV5Il0sWyJGaXJzdF9ZZWFyIiwiMjAyMSJdLFsiTGFzdF9ZZWFyIiwiMjAyNCJdLFsiU2NhbGUiLCIwIl0sWyJTZXJpZXMiLCJBIl1dfQ==. Accessed 3 
Dec. 2025.
---------------------------------------------------------------------------

    For children who are currently receiving SRPs at hospitals, there 
is likely to be bifurcation in their response to the proposed 
requirement. Some of these children may no longer receive SRPs at non-
hospital providers that are not covered by the proposed requirement due 
to factors, such as difficulty in identifying in-network providers that 
have available space and longer commute times to these 
providers.93 94 The end of SRPs for these children would 
result in a reduced payments from payors, including insurance companies 
and private persons, to hospitals. Other children, however, are likely 
to switch to other provider types that are not affected by this 
proposed requirement. For these children, the proposed requirement 
would result in a change in transfers from Medicare-certified hospitals 
to other providers.
---------------------------------------------------------------------------

    \93\ Borah, Luca et al. ``State Restrictions and Geographic 
Access to Gender-Affirming Care for Transgender Youth.'' JAMA vol. 
330,4 (2023): 375-378. doi:10.1001/jama.2023.11299.
    \94\ Gridley, Samantha J et al. ``Youth and Caregiver 
Perspectives on Barriers to Gender-Affirming Health Care for 
Transgender Youth.'' The Journal of Adolescent Health, vol. 59,3 
(2016): 254-261. doi:10.1016/j.jadohealth.2016.03.017.
---------------------------------------------------------------------------

    In the absence of data showing the likely share of patients in each 
category, we assumed that 50 percent of affected children would fall 
into each of the categories described above. Using this percentage, we 
estimate that the proposed requirements would result in $5,347,077 in 
reduced costs for payors and a $5,347,077 change in transfers from 
hospitals to other provider types annually. We seek comments on our 
assumption regarding the share of patients in each group.
    For children who continue receiving SRPs, there are the costs 
associated with switching providers. Dahl and Forbes (2023) estimate 
that 46-percent of individuals are willing to pay over $600 per person 
(in 2011 dollars, or approximately $821 when updated for inflation) to 
avoid switching medical providers.95 96 The full 
willingness-to-pay (WTP) distribution is not reported, but for purposes 
of this regulatory

[[Page 59475]]

impact analysis, it is assumed that $821 is a reasonable estimate of an 
average that includes the 46-percent of WTP amounts above it and the 
54-percent below. Applying this $821 amount to the above-estimated 
8,570 affected patients (including 4,285 patients who would switch 
providers and 4,285 patients for whom the switching-cost estimate is a 
lower bound on the WTP to avoid the experience of being unable to 
switch \97\ yields a cost estimate of $7,035,970 that declines over 
several years to an annual $3,517,985. Because the Dahl and Forbes 
estimate is derived from a choice between retaining or switching 
primary-care physicians--where finding substitute providers may be 
relatively easy as compared with finding, and maintaining patient-
provider relationship with facilities offering the specialized 
treatment associated with adolescent gender dysphoria--this estimate 
may have a tendency toward understatement of the proposed rule's cost 
to patients for switching providers.
---------------------------------------------------------------------------

    \95\ Bureau of Economic Analysis. ``National Income and Product 
Accounts.'' BEA Interactive Data Application, https://apps.bea.gov/iTable/?reqid=19&step=3&isuri=1&1921=survey&1903=13#eyJhcHBpZCI6MTksInN0ZXBzIjpbMSwyLDMsM10sImRhdGEiOltbIk5JUEFfVGFibGVfTGlzdCIsIjEzIl0sWyJDYXRlZ29yaWVzIiwiU3VydmV5Il0sWyJGaXJzdF9ZZWFyIiwiMjAyMSJdLFsiTGFzdF9ZZWFyIiwiMjAyNCJdLFsiU2NhbGUiLCIwIl0sWyJTZXJpZXMiLCJBIl1dfQ==. Accessed 18 
Aug. 2025.
    \96\ Dahl, Gordon B., and Forbes, Silke J. ``Doctor switching 
costs.'' Journal of Public Economics vol. 221, May (2023): pp. 
104858.
    \97\ The latter portion of the estimate persists in any year 
when SRPs are estimated to occur at a reduced level due to the 
proposed rule. By contrast, the former effect is assumed to decline 
over the first several years of the analytic time horizon, as 
provider-switching patients age out of childhood.
---------------------------------------------------------------------------

    In Table 3, we estimate the costs and transfers associated with the 
proposed requirement over 10 years. Overall, we expect that this 
proposed rule would result in approximately $53.5 million in savings 
for payors due to some patients ending SRPs, with a cost of $44 million 
to patients who continue treatment at new providers for finding a new 
provider and for patients who would have paid to avoid the experience 
of being unable to switch providers. We also expect a change in 
transfers of $53.5 million from hospitals to other provider types as 
patients seek alternative sources of care. The effect attributable to 
this proposed rule might be lower in magnitude than the aggregate 
presented here if other actions, such as the HHS/CMS proposal titled 
``Prohibition on Federal Medicaid and Children's Health Insurance 
Program Funding for Sex-Rejecting Procedures Furnished to Children'' 
are finalized before finalization of this proposal.

         Table 3--Costs and Transfers for Changing Patient Behavior Related to Sex-Rejecting Procedures
----------------------------------------------------------------------------------------------------------------
                                                                         Costs
                                                        --------------------------------------
                                                                                Switching
                                                                                providers
                          Year                              Ending sex-     (probably tending    Transfers ($)
                                                             rejection         toward cost
                                                           procedures ($)    underestimation)
                                                                                   ($)
----------------------------------------------------------------------------------------------------------------
1......................................................         -5,347,077          7,035,970          5,347,077
2......................................................         -5,347,077          6,156,474          5,347,077
3......................................................         -5,347,077          5,276,978          5,347,077
4......................................................         -5,347,077          4,397,481          5,347,077
5......................................................         -5,347,077          3,517,985          5,347,077
6......................................................         -5,347,077          3,517,985          5,347,077
7......................................................         -5,347,077          3,517,985          5,347,077
8......................................................         -5,347,077          3,517,985          5,347,077
9......................................................         -5,347,077          3,517,985          5,347,077
10.....................................................         -5,347,077          3,517,985          5,347,077
                                                        --------------------------------------------------------
    10 Year Total......................................        -53,470,770         43,974,813         53,470,770
----------------------------------------------------------------------------------------------------------------

    In developing our estimate, we acknowledge that this quantitative 
approach may fail to capture a societal cost pattern that may be 
somewhat concentrated in upfront transition activity--for example, the 
potential establishment of free-standing clinics to provide SRPs that 
would newly be prohibited at hospitals participating in Medicare.\98\ 
There may also be costs for clinicians who provide SRPs for children at 
hospitals who would incur costs to move to other provider types where 
these procedures are allowed. We also acknowledge that some patients 
may choose new forms of treatment such as psychotherapy. Given these 
various uncertainties, we request comment on how to refine the 
estimation of regulatory costs.
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    \98\ The cost of setting up separate specialty facilities (a 
process encompassing managerial, legal, and physical tasks) would 
exceed the cost of achieving only physical separation--estimated 
previously by the Department to be at least $20,000 to $40,000 per 
entity undertaking such actions. Please see Compliance With 
Statutory Program Integrity Requirements, 84 FR 7714, https://www.federalregister.gov/d/2019-03461/ page-7782.
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2. Benefits
    As we have noted throughout the proposed rule in Sections I and II, 
the proposed requirement is designed to ensure the health and safety of 
children by limiting SRPs given recent research that questions its 
efficacy and safety. Although we do not have quantitative financial 
data on the impact of the proposed rule's provision, we estimate the 
number of children who this proposed rule would positively affect using 
the same strategy used when estimating the rule's collection of 
information costs. Specifically, we expect that due to factors such as 
difficulty in identifying in-network providers that have available 
space and longer commute times to these providers 99 100, 
half of the 8,570 (or 4,285) children who are receiving SRPs in 
hospitals would stop receiving these procedures leading to the 
avoidance of unnecessary health complications. As noted in the 
collection of information section, we assumed this percentage in the 
absence of quantitative data showing the number of children who will no 
longer seek SRPs. We seek comments on additional benefits that could 
emerge from these proposed requirements and sources of data to provide 
a quantitative estimate of the proposed rule's benefits. We also seek 
comments on sources of data to more accurately estimate the

[[Page 59476]]

number of children who will stop receiving SRPs.
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    \99\ Borah, Luca et al. ``State Restrictions and Geographic 
Access to Gender-Affirming Care for Transgender Youth.'' JAMA vol. 
330,4 (2023): 375-378. doi:10.1001/jama.2023.11299.
    \100\ Gridley, Samantha J et al. ``Youth and Caregiver 
Perspectives on Barriers to Gender-Affirming Health Care for 
Transgender Youth.'' The Journal of Adolescent Health, vol. 59,3 
(2016): 254-261. doi: 10.1016/j.jadohealth.2016.03.017.
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C. Alternatives Considered

    As we detailed earlier in this proposed rule, the growth in SRPs in 
children is a growing concern given recent research that questions its 
efficacy and safety. We believe that the changes we are proposing are 
necessary to ensure the health and safety of children throughout the 
United States and align with the best available scientific evidence. We 
acknowledge, however, that there are different standards that we could 
have used in developing these proposed requirements.
    In developing this proposed rule, we considered aligning our 
requirements with those States that already have restrictions on SRPs 
but with a variety of exceptions they provide as outlined in Section 
1.B of this proposed rule. For example, we could have allowed those 
currently receiving these procedures to continue receiving them. 
Ultimately, however, we have decided to adopt the proposed provisions 
with fewer exceptions than are allowed in these States to maximize 
health and safety for all children. We seek comments, however, on 
whether we should adopt one or more of the additional State exceptions 
related to SRPs.

D. Regulatory Review Cost Estimation

    Due to the uncertainty involved with accurately quantifying the 
number of entities that will review the proposed rule when finalized, 
we assume that all hospitals will review this rule. We acknowledge that 
this assumption may understate or overstate the costs of reviewing this 
proposed rule. It is also possible that other individuals and providers 
will review this proposed rule. For these reasons we thought that 
doubling the number of Medicare or Medicaid certified hospitals (n = 
4,832) would be a fair estimate of the number of reviewers of this 
proposed rule. We welcome any comments on the approach in estimating 
the number of entities which will review this proposed rule. We also 
recognize that different types of entities are in many cases affected 
by mutually exclusive sections of this proposed rule, and therefore, 
for the purposes of our estimate, we assume that each reviewer reads 
approximately 75 percent of the rule. We seek comments on this 
assumption.
    Using the wage information from the Bureau of Labor Statistics 
(BLS) for medical and health service managers (Code 11-9111), we 
estimate that the cost of reviewing this proposed rule is $132.44 per 
hour, including overhead and fringe benefits (https://www.bls.gov/oes/current/oes_nat.htm). Assuming an average reading speed of 250 words 
per minute, we estimate that it would take approximately ([9,500 words/
250 words per minute] x 75 percent) 28.5 minutes for the staff to 
review 75 percent of this proposed rule. For each entity that reviews 
the rule, the estimated cost is $62.91 (0.475 hours x $132.44). 
Therefore, we estimate that the total cost of reviewing this regulation 
is $607,962 ($[62.91] x [9,664]).

E. Accounting Statement

    As required by OMB Circular A-4 (available online at https://www.whitehouse.gov/wp-content/uploads/2025/08/CircularA-4.pdf), we have 
prepared an accounting statement in Table 4 showing classification of 
the costs and benefits associated with the provisions of this proposed 
rule. This includes the total costs for hospitals providing notices to 
children and their parents that they are no longer providing SRPs as 
identified in Table 1, the cost for hospitals to update their policies 
and procedures in Table 2, the reduction in costs due to the ending of 
SRPs for some patients as well as an increase in cost for patients who 
seek new providers in Table 3, as well as the regulatory review costs. 
There are also transfer costs for patients seeking care at other 
providers as outlined in Table 3. There are $0 benefit estimates in the 
statement. This statement provides our best estimate for the Medicare 
and Medicaid provisions of this proposed rule.

                                          Table 4--Accounting Statement
----------------------------------------------------------------------------------------------------------------
                                                                                       Units
                                                                 -----------------------------------------------
                    Category                         Estimate                      Discount rate
                                                                    Year dollar         (%)       Period covered
----------------------------------------------------------------------------------------------------------------
Annualized Monetized Costs ($million/year)......       0.32-0.04            2024          7 or 3       2026-2035
Annualized Monetized Transfers ($million/year)..             5.3            2024          7 or 3       2026-2035
----------------------------------------------------------------------------------------------------------------

F. Regulatory Flexibility Act (RFA)

    The RFA requires agencies to analyze options for regulatory relief 
of small entities, if a rule has a significant impact on a substantial 
number of small entities. For purposes of the RFA, we estimate that 
most hospitals (NAICS 6221) are considered small businesses either by 
the Small Business Administration's size standards with total revenues 
of $47.0 million or less in any single year or by the hospital's not 
for profit status. According to the 2022 Economic Census,\101\ general 
medical and surgical hospitals (NAICS 6221) have revenues of $1.27 
trillion.
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    \101\ U.S. Census Bureau. ``All Sectors: Summary Statistics for 
the U.S., States, and Selected Geographies: 2022.'' Economic Census, 
United States Census Bureau, 2022, data.census.gov/table/EC2200BASIC?q=EC2200BASIC. Accessed 15 Dec. 2025.
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    Individuals and States are not included in the definition of a 
small entity. As its measure of significant economic impact on a 
substantial number of small entities, HHS uses a change in revenue of 
more than 3 to 5 percent. With estimated annual costs and reduction in 
transfers resulting in the loss of approximately $11.4 million in 
annual revenues for hospitals, which is approximately 0.0008 percent of 
revenues, this proposed rule would not have a significant economic 
impact as measured on a substantial number of small businesses or other 
small entities as measured by a change in revenue of 3 to 5 percent. 
Therefore, the Secretary has certified that this proposed rule will not 
have a significant economic impact on a substantial number of small 
entities.
    In addition, section 1102(b) of the statute requires us to prepare 
a regulatory impact analysis if a rule may have a significant impact on 
the operations of a substantial number of small rural hospitals. This 
analysis must conform to the provisions of section 603 of the RFA. For 
purposes of section 1102(b) of the statute, we define a small rural 
hospital as a hospital that is located outside of a metropolitan 
statistical area and has fewer than 100 beds. With total requirement 
costs and the loss of transfers reducing hospital revenues by 
approximately $11.4 million annually for all 4,832 hospitals, or $2,194 
per hospital, we expect that

[[Page 59477]]

this proposed rule would have a negligible impact on small rural 
hospitals. Therefore, the Secretary has certified that this proposed 
rule will not have a significant impact on the operations of a 
substantial number of small rural hospitals.

G. Unfunded Mandates Reform Act (UMRA)

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) also 
requires that agencies assess anticipated costs and benefits before 
issuing any rule whose mandates require spending in any 1 year of $100 
million in 1995 dollars, updated annually for inflation. In 2025, that 
threshold is approximately $187 million. This proposed rule does not 
mandate any spending requirements for State, local, or tribal 
governments, or for the private sector.

H. Federalism

    Executive Order 13132 establishes certain requirements that an 
agency must meet when it issues a proposed rule (and subsequent final 
rule) that imposes substantial direct requirement costs on State and 
local governments, pre-empts State law, or otherwise has federalism 
implications. This proposed rule would pre-empt State laws that 
prohibit SRPs for children that include exceptions for reasons beyond 
those exceptions provided in this proposed rule, including for children 
who are already undergoing these procedures. It would also pre-empt 
State laws requiring hospitals to provide SRPs.
    Consistent with the Executive Order, we find that State and local 
laws that provide exceptions from the prohibition beyond those listed 
in this proposed rule, as well as State and local laws that require 
hospitals to provide SRPs for children, directly conflict with this 
exercise of CMS' statutory health and safety authority to prohibit 
providers subject to this proposed rule from providing these 
procedures.
    Similarly, to the extent that State-run hospitals that receive 
Medicare and Medicaid funding are required by State or local law to 
provide SRPs for children except in those cases covered by our 
exceptions, there is direct conflict between the provisions of this 
proposed rule (prohibiting such procedures) and the State or local law 
(allowing them).
    As is relevant here, this proposed rule preempts the applicability 
of any State or local law providing for SRPs to the extent such law 
provides broader grounds for these procedures than provided for by 
Federal law and are inconsistent with this proposed rule. In these 
cases, consistent with the Supremacy Clause of the Constitution, the 
agency intends that this proposed rule preempts State and local laws to 
the extent the State and local laws conflict with this proposed rule. 
The agency has considered other alternatives (for example, relying 
entirely on State laws prohibiting SRPs) and has concluded that the 
requirements established by this proposed rule are the minimum 
regulatory action necessary to achieve the objectives of the statute.
    Given the growth in SRPs among children in recent years, we believe 
that the prohibition of these procedures for children is necessary to 
promote and protect patient health and safety. The agency has examined 
research on SRPs for children and concludes that it can cause permanent 
harm with uncertain benefits. We are inviting State and local comments 
on the substance as well as legal issues presented by this proposed 
rule, and its impact on them.

I. E.O. 14192, ``Unleashing Prosperity Through Deregulation''

    Executive Order 14192, entitled ``Unleashing Prosperity Through 
Deregulation'' was issued on January 31, 2025, and requires that ``any 
new incremental costs associated with new regulations shall, to the 
extent permitted by law, be offset by the elimination of existing costs 
associated with at least 10 prior regulations.'' We followed the 
implementation guidance from OMB-M-25-20 (https://www.whitehouse.gov/wp-content/uploads/2025/02/M-25-20-Guidance-Implementing-Section-3-of-Executive-Order-14192-Titled-Unleashing-Prosperity-Through-Deregulation.pdf) when estimating the proposed rule's impact related to 
the executive order. Specifically, we used a 7 percent discount rate 
when estimating the cost for the purposes of Executive Order 14192. In 
accordance with the provisions of Executive Order 12866, this 
regulation was reviewed by the Office of Management and Budget.
    Mehmet Oz, Administrator of the Centers for Medicare & Medicaid 
Services, approved this document on December 17, 2025.

List of Subjects in 42 CFR Part 482

    Grant programs health, Hospitals, Medicaid, Medicare, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, the Centers for Medicare 
& Medicaid Services proposes to amend 42 CFR chapter IV as set forth 
below:

PART 482--CONDITIONS OF PARTICIPATION FOR HOSPITALS

0
1. The authority citation for part 482 continues to read as follows:

    Authority:  42 U.S.C. 1302, 1395hh, and 1395rr, unless otherwise 
noted.

0
2. Section 482.46 is added to subpart C to read as follows:


Sec.  482.46  Condition of participation: Sex-rejecting procedures.

    The hospital must not perform sex-rejecting procedures on any 
child.
    (a) Definitions. As used in this section:
    (1) ``Child'' means any individual younger than 18 years of age.
    (2) ``Female'' means an individual of the sex characterized by a 
reproductive system with the biological function of (at maturity, 
absent disruption or congenital anomaly) producing eggs (ova).
    (3) ``Male'' means an individual of the sex characterized by a 
reproductive system with the biological function of (at maturity, 
absent disruption or congenital anomaly) producing sperm.
    (4) ``Sex'' means an individual's immutable biological 
classification as either male or female.
    (5) ``Sex-rejecting procedure'' means any pharmaceutical or 
surgical intervention that attempts to align an individual's physical 
appearance or body with an asserted identity that differs from the 
individual's sex either by:
    (i) Intentionally disrupting or suppressing the development of 
biological functions, including primary or secondary sex-based traits; 
or
    (ii) Intentionally altering an individual's physical appearance or 
body, including removing, minimizing, or permanently impairing the 
function of primary or secondary sex-based traits such as the sexual 
and reproductive organs.
    (b) Exceptions. The definition at paragraph (a)(5) of this section 
does not include procedures:
    (1) To treat an individual with a medically verifiable disorder of 
sexual development;
    (2) For purposes other than attempting to align an individual's 
physical appearance or body with an asserted identity that differs from 
the individual's sex; or
    (3) To treat complications, including any infection, injury, 
disease, or disorder that has been caused by or

[[Page 59478]]

exacerbated by the performance of a sex-rejecting procedure.

Robert F. Kennedy, Jr.,
Secretary, Department of Health and Human Services.
[FR Doc. 2025-23465 Filed 12-18-25; 8:45 am]
BILLING CODE 4120-01-P