Vice President JD Vance and HHS Secretary Robert F. Kennedy Jr. just referred more than 225 hospitals and health systems to the Department of Justice and HHS Inspector General for potential federal law violations after they carried out transgender procedures on children.
The move follows the release of a bombshell HHS report titled “Wolves in White Coats: How Doctors and Hospitals Pushed and Profited from the Fraud of ‘Gender Medicine.’”
The report details how providers allegedly pushed vulnerable minors into experimental treatments for profit, using misleading billing codes to extract tens of millions from Medicaid and private insurers.
Vance stated: “For years now, some hospitals and healthcare providers have been subjecting children to horrific, experimental treatments in service of radical gender ideologies. Today, thanks to the Wolves in White Coats report released by @HHSGov, we know why: profit. It turns out that convincing vulnerable children to reject their gender can create patients for life, earning hospitals tens of thousands of dollars in additional revenue per child.”
He added that providers may have been defrauding Medicaid and private insurers with fraudulent billing codes.
“This Administration will not stand idly by while some in the medical community harm our children in search of profit. That is why today I am referring this matter to the Department of Justice to launch a federal criminal investigation. We will stop this fraud and restore trust in public health,” Vance further outlined.
This Administration will not stand idly by while some in the medical community harm our children in search of profit. That is why today I am referring this matter to the Department of Justice to launch a federal criminal investigation. We will stop this fraud and restore trust in… pic.twitter.com/FCAsl4wpY4
— JD Vance (@JDVance) August 13, 2026
The report found more than 225 hospitals and health systems established pediatric gender programs nationwide. It identified approximately $50 million in insurance claims for puberty blockers billed using the diagnostic code for “endocrine disorder, unspecified,” plus nearly $11 million more for patients ages 13-17 billed under a precocious puberty code.
Average healthcare costs for a minor sit around $3,000; a “transition” path can jump that to $75,000 without surgery and nearly $170,000 with it.
Vance’s letter to Attorney General Todd Blanche was direct: “When providers miscode treatment in order to secure insurance coverage for gender-transitioning interventions that insurance would not otherwise cover, they should be held accountable. If they have done so intentionally, thereby perpetrating a fraud on Medicaid or on private insurers, they should go to prison.”
At the same time, the administration finalized a rule ending federal Medicaid and CHIP funding for puberty blockers, cross-sex hormones, and transition surgeries on children and youth. The rule takes effect October 13, with a limited six-month tapering period for those already on hormones.
HHS Secretary Robert F. Kennedy Jr. said: “Today, we are ending federal taxpayer funding for sex-rejecting procedures on children. These interventions carry serious risks and can cause irreversible harm. The federal government will no longer use Medicaid and CHIP dollars to fund procedures that fail to meet the evidentiary standard our children deserve.”
CMS Administrator Dr. Mehmet Oz added: “Children deserve our protection, not experimental interventions that pose serious risks and convey no proven benefits. By cutting off federal funds for these sex-rejecting procedures, we’re following the science, saving taxpayer dollars, and, most importantly, protecting children from potentially irreversible harm so they can truly flourish.”
This is exactly what Trump campaigned on. In 2023 he vowed to “sign a law prohibiting child sexual mutilation in all 50 states.”
In early 2024 he also pledged: “I will sign an executive order to cut federal funding for any school pushing critical race theory, transgender insanity, and other inappropriate racial, sexual or political content on our children.”
He is delivering. Earlier this year the DOJ opened probes into 36 Illinois school districts for allegedly facilitating gender transitions behind parents’ backs and pushing sexual orientation and gender ideology without proper opt-outs.
The scale of the prior damage is staggering. Data from 2019-2023 showed nearly 14,000 minors underwent some form of sex-change treatment under the previous regime, including 5,747 surgical procedures and 8,579 receiving hormones or puberty blockers.
Hospitals pocketed around $120 million from these interventions on children.
Clinicians are already facing lawsuits. One successful case involved a psychologist and surgeon sued for approving and performing a double mastectomy on a 16-year-old. Other child psychologists should take note.
A plastic surgeon who trained at a major New York hospital recently apologized for staying silent: “As a father to three young children, and as a physician who took an oath to do no harm, I failed to speak up.” He credited Trump for providing moral clarity.
This latest accountability push arrives on the heels of another major health reset. Just days ago the administration slashed the childhood vaccine schedule to 11 core shots, prioritizing parental choice and evidence over bloated pharmaceutical recommendations.
The pattern is clear. Radical gender ideology turned hospitals into profit centers that preyed on confused kids and hid the truth from parents.
The Trump administration is dismantling the financial incentives, referring potential fraud for criminal investigation, and restoring the principle that children are not experiments or revenue streams. Parents are back in charge. The medical establishment is on notice.
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