Currently Medicare is not subsidizing such surgery. Various groups are pursuing the case against HHS to provide it, HHS is taking the position of “no position”, they’re not bothering to fight it.
Via Newsbusters:
The latest edition of the gay newspaper The Washington Blade displayed what liberal newspapers don’t find controversial: “Medicare to examine ban on gender reassignment.” In other words, leftists are pushing the Obama administration to subsidize sex-change operations. We’re posting enormous deficits, but the “progressives” are always searching for new entitlements.
As usual, liberal journalists refer to this lack of “access” to taxpayer money a “ban.” Chris Johnson reported: “The document from the Department of Health & Human Services, dated Dec. 2, finds that the reasoning for the ban is ‘not complete and adequate’ to support denying Medicare coverage for transgender people seeking the procedure.”

