Health plan for NC state employees will cover sex reassignment costs, for now

Officials in charge of the North Carolina State Health Plan, which covers teachers, employees and retirees, plan to appeal a federal court order requiring the plan to cover sex reassignment procedures, they said Wednesday.

But for now the plan will pay for those treatments, opening a window for plan members and dependents who sued to win this coverage more than three years ago.

U.S. District Court Judge Loretta Biggs ruled in their favor last month. Wednesday, after a State Health Plan Board of Trustees meeting, State Treasurer Dale Folwell said that the board would abide by the order. Folwell’s office manages the health plan, which has more than 750,000 members and dependents.

“We obviously disagree with the judge’s order that is, in essence, assuming responsibility for determining plan benefits for sex transition operations,” Folwell said in a statement. “However, I’ve always said that if the legislature or the courts tell me we have to provide for sex transition operations and treatments, I would.”

Folwell had little choice.

“The judge’s order is quite clear,” said David Brown, a lawyer in the case with the Transgender Legal Defense and Education Fund. “The state of North Carolina has to cover care for everyone. … Several weeks after the court’s order they have said, ‘Fine we will comply.’”

Folwell’s legal team in the case this week notified the court that it planned to appeal the decision. The Treasurer’s Office said it would request a stay, which could block Biggs’ order while the case continues. It wasn’t immediately clear what that would mean for people who seek coverage for sex reassignment procedures in the interim.

“The benefit is covered while the order is in force,” Treasurer’s Office spokesman Frank Lester said in an email. “If the order is not in force, then the benefit will not be covered.”