A report released by the U.S. Department of Health and Human Services (HHS), titled “Wolves in White Coats,” alleges that hospitals and doctors intentionally used incorrect medical billing codes to secure insurance payments for youth gender-transition procedures between 2015 and 2025. According to the 64-page document, providers frequently utilized vague or unrelated diagnosis codes—such as unspecified endocrine disorders or precocious puberty—to bypass insurance rejections for puberty blockers, cross-sex hormones, and surgeries on minors.
The report highlights nearly $50 million in questionable public and private insurance claims, noting that resources like “Trans in the South” allegedly instructed providers to swap accurate gender-related codes with unrelated conditions like “vulvar pain” or “irregular menses.” Following the report’s release, Vice President JD Vance referred the findings to the Department of Justice for a potential investigation under the False Claims Act, while HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Dr. Mehmet Oz emphasized that the administration will pursue accountability and scrutinize these billing practices.
