A recent decision was made regarding medical treatments for Gender Identity Disorder (GID) by the United States Tax court. A full bench review affirmed that these treatments, including hormone therapy and surgery, are allowable deductible medical expenses.
The case review originated from a lawsuit of an IRS denial of a sex reassignment surgery in 2001. The denial categorized the procedure as cosmetic—similar to hair transplants or teeth whitening.
The Story
The 57 year old male was conflicted about his gender since he was eight. After decades of struggle, he was diagnosed with GID at 52 years of age. He underwent professionally prescribed treatments. This eventually resulted in the sex reassignment surgery at the age of 57.
Medical Insurance Coverage
Transgender surgery is generally not covered by medical insurance. The reasons why are:
The reality is that sex reassignment surgery pre-qualification is very rigorous. Studies indicate that people with GID are much happier after surgery.
Regarding cost, the city of San Francisco started covering transgender health care for municipal employees in 2001. They’ve reported a collection of $5.6 million for the coverage. They’ve paid out just $386,417 on 39 claims over five years. That’s a 93% profit.
One reason for this is that transgender surgery is usually a onetime surgery. Plus, most transgender sufferers do not have the surgery at all.
In fact, the cost experience is similar to gall bladder removal or heart surgery.
It appears that eventually this surgery will be covered by insurance companies if not because of employer pressure it will be because it appears to be good business.
Photo via Daniel Morrison
