Congressional hearing reveals Medicaid fraud in gender transition treatments at Texas Children's Hospital

On April 10, 2025, the U.S. House Committee on the Judiciary convened to discuss the pressing issue of lawfare against whistleblowers who protect children, particularly in the context of medical practices surrounding gender identity. The meeting highlighted the experiences of whistleblower Jamie Reed, who exposed alleged malpractice at the Washington University Transgender Clinic in St. Louis.

The session began with a focus on the importance of supporting whistleblowers, who are often subjected to federal investigations despite their efforts to safeguard children. A committee member emphasized that these individuals should be regarded as heroes rather than targets of legal action. Reed's testimony was central to the discussion, as she revealed what she described as a blatant disregard for the well-being of children undergoing gender transition treatments.

The conversation shifted to the No Harm Act, introduced by a committee member who is also a physician. This legislation aims to prevent harm to children by prohibiting certain medical procedures related to gender transition. The member expressed concern over the financial implications of these treatments, particularly regarding Medicaid fraud. He noted that some medical professionals were allegedly misdiagnosing children to justify expensive transition procedures, which he argued was both unethical and harmful.

Further testimony revealed that some hospitals were reportedly using incorrect diagnostic codes to facilitate the administration of hormone treatments. A whistleblower from Texas Children's Hospital shared firsthand accounts of misdiagnoses, where patients were labeled with conditions like testosterone deficiency instead of being accurately diagnosed with gender dysphoria. This practice complicates the detection of fraud and raises ethical questions about the treatment of minors.

The meeting concluded with a call for greater accountability in medical practices related to gender identity, emphasizing the need for transparency and ethical standards in the treatment of children. The committee members expressed their commitment to protecting whistleblowers and ensuring that children's health is prioritized over financial interests in the healthcare system. The discussions underscored the ongoing debate surrounding gender transition treatments and the implications for both medical ethics and child welfare.