The Cost of Transgender Health Benefits

Until recently, there has been no good information about the cost of Transgender Health Benefits (THBs.) As a result, there have been many figures cited, but all are based on assumptions.

In 2004, all that changed. A scholarly research study has been written. We now have an accurate picture of the number of sex reassignment surgeries performed each year, and their average cost.

Summary of the Research Report

The research study was undertaken from 2001 through 2006 by Mary Ann Horton, Ph.D. The goal was to measure the frequency and cost of sex reassignment surgeries, and to use this information to project the total cost of Transgender Health Benefits for the employees of large companies. This data could be used to help employers estimate what it would cost if they chose to include coverage of THBs in their employee health benefit plans.

Dr. Horton sent surveys to all surgeons who perform SRS and related surgeries on US residents, asking how many surgeries were performed in the year 2001, and how much they cost. Both Male to Female (MTF) and Female to Male (FTM) data were collected. An excellent response rate permitted the creation of high quality data about surgeries.

Approximately US 1170 (all figures rounded) transsexuals had their primary SRS in 2001. (Many went to other countries for their surgery, but the study was restricted to US resident patient, having the SRS in any country.) The average MTF cost was about $10,400, and the average FTM surgery (including top and, for those who had it, bottom surgery) was about $17,900. MTF surgeries outnumbered FTM surgeries 740 to 430, leading to an average combined cost for SRS of $12,900.

The annual cost per insured US resident for SRS was $.06. Combined with the cost for hormones, doctor's office visits, and therapy, the total annual cost per insured for all THBs was $.39. $.22 or more is likely to be currently covered, and with full coverage, the employee share averages $.06; therefore, the added cost to an employer to cover all four transgender health benefits is projected at $.11/year/insured or less.

Read about the Research Reports

The latest draft of the research report is dated 3/30/2006. A 90 minute workshop based on the resport has been presented at the Out and Equal conference in 2004, 2005, and 2006. The workshop is a good introduction to the subject, and may be followed up, if desired, by reading the papers for publication.

You can view the Powerpoint from the workshop, The Cost of Transgender Health Benefits, and then read the current draft at the research report.

If you do not have Powerpoint available, a version of the workshop (dated 1/16/2006) can be viewed directly on the web. Transgender at Work has reformatted the presentation for the web. a web version of the presentation. You can sit through Dr. Horton's workshop with your web browser, complete with the workshop exercises and quizzes. Click here to view the workshop. .


Back to Transgender at Work home page.