Using variation in the coverage of gender-affirming care under Medicaid, we provide the first evidence of increasing access to gender-affirming care on the mental health of transgender people. We use data from the 2014-20 Behavioral Risk Factor Surveillance System paired with a triple-difference design that leverages state-level differences in timing and availability of Medicaid coverage for gender-affirming care and income-based Medicaid eligibility thresholds. Results demonstrate that Medicaid coverage of gender-affirming care meaningfully improves the mental health of transgender people. We also provide suggestive evidence that this is driven by increased take-up of gender-affirming care.
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