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Understanding Essential Health Benefits

The latest budget bills exclude transition-related care from Medicaid and essential health benefit coverage - which would harm hundreds of thousands of transgender people.
understanding essential health benefits

By Fiadh McKenna and Tekla Taylor

On May 22, 2025, House Republicans passed a budget that includes numerous cuts to Medicaid, jeopardizing the health and wellbeing of millions of people all across the country. This budget is not final and may change as it goes through the reconciliation process between the House and Senate. However, one of the most dangerous aspects involves banning  the coverage of transition-related care, both under Medicaid and as essential health benefits.  

On June 16, the Senate Finance Committee released their prospective budget text, which would also exclude trans healthcare from Medicaid and essential health benefit coverage.   We know that this care is both medically necessary and based on decades of research, and it is vital that this care is covered. Whatever the final form of our national budget, we must ensure that our healthcare is protected. 

This in-depth resource, available here, explains how essential health benefits work, particularly for trans healthcare. 

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