Medicaid and Medicare

A coalition of 19 states and the District of Columbia sued HHS Tuesday in U.S. District Court in Eugene, Oregon, challenging Secretary Robert F. Kennedy Jr.’s declaration that puberty blockers, cross‑sex hormones and transition‑related surgeries for minors are unsafe and warning providers they could be excluded from Medicare and Medicaid; plaintiffs led by New York AG Letitia James and including Pennsylvania Gov. Josh Shapiro say the declaration is inaccurate, unlawful and was issued without required notice‑and‑comment rulemaking. The suit does not yet directly contest two separate HHS proposed rules that would bar Medicaid/CHIP payments and threaten hospitals’ Medicare/Medicaid participation, but critics — including major medical groups — say the broader federal actions, along with related OCR and FDA moves, would sharply curtail youth access to gender‑affirming care.