Federal workers sue Trump admin over cutting insurance coverage for sex changes

The class-action complaint states, "We are federal employees making a discrimination claim regarding an employment benefit; i.e., health insurance. We make this claim on behalf of ourselves and a class of similarly-situated federal employees. The class comprises federal employees enrolled in the Federal Employee Health Benefits program (FEHB) or the Postal Service Health Benefits program (PSHB) who have been or will be denied their or their dependents’ claims for insurance coverage for certain gender-affirming medical care due to the Office of Personnel Management’s (OPM) policy to eliminate insurance coverage for this care as of January 1, 2026."

The OPM’s FEHB Program Carrier Letter stated that beginning in plan year 2026, "chemical and surgical modification of an individual's sex traits through medical interventions (to include 'gender transition' services) will no longer be covered under the FEHB or PSHB Programs." The federal workers allege that denying insurance coverage for sex changes is discrimination on the basis of sex.

One of the class representatives, a Department of State employee, said that their healthcare providers have recommended that they undergo a "phalloplasty procedure to treat my diagnosed gender dysphoria, which is in accordance with medical literature and standards of care," a procedure that would no longer be covered.

Another employee, who works at the Department of Health and Human Services, said, "My healthcare providers recommend that I undergo a chest surgery revision to treat my diagnosed gender dysphoria, which is in accordance with medical literature and standards of care. OPM’s policy will categorically deny insurance coverage for this procedure."

A United States Postal Service worker said that the changes would block their daughter from receiving a puberty blocker implant for "her diagnosed gender dysphoria," as well as cross-sex hormones. Another State Department employee said that while they have not received hormonal and surgical treatment, their doctors have recommended it.

The lawsuit is seeking a reversal of the OPM’s policy, a declaratory judgement that the policy violates Title VII "by discriminating against us and all similarly-situated individuals on the basis of sex," retroactive care, economic damages, and a minimum of four hours of training for FEHB and PSHB administrators "regarding their responsibilities under EEO laws, particularly with respect to Title VII and transgender individuals."