Helen Stojic, spokesperson for Blue Cross Blue Shield of Michigan, says the decision by the insurer to eliminate coverage of gender reassignment was simply a matter of aligning their product with what is currently offered in the market.

“We took a look at our product line and what other insurers were covering in other markets,” she said in a phone interview late Tuesday night. “Most don’t cover this type of surgery. So we are aligned our products.” 

Michigan Messenger reported Tuesday that BCBS of Michigan had received permission from state regulators to change insurance coverage offerings, and elimination of gender reassignment surgery was one of those approved changes.

Stojic said the insurer, which is mandated by state law to offer coverage to those other insurers will not cover, reduced the cap for maternity coverage in the new alignment as well. The changes impact only single payer plans.

Stojic said the company posted a $133 million loss in the single payer plans last year, but could not give an estimate of how much of that was a result of gender reassignment surgery.

The decision, approved in Feb. has been decried by a coalition of groups working for gender equality, and state regulators called the decision “unfortunate.” Stojic was not particularly warm to the concerns expressed, however.

“We certainly understand that people who are particularly interested in [transgender health] may not be happy with [coverage elimination],” she said. “We have to compete in the market.”