Federal judge halts transgender health care mandate on the same day Catholic groups file lawsuit

A federal judge in Texas has issued a preliminary injunction against a regulation that forces religious health care providers and hospitals to perform sex reassignment procedures and abortion services. Several Catholic groups in North Dakota have filed a lawsuit against the mandate on the same day.

U.S. District Judge Reed O'Connor granted the injunction on Saturday in response to a lawsuit filed in August 2016 by Texas on behalf of the Franciscan Alliance and the states of Lousiana, Arizona and Mississippi.

The new regulations, which are part of anti-discrimination protections under the Affordable Care Act, was passed by the Department of Health and Human Services (HHS) in May 2016 and was supposed to take effect on Jan. 1. It requires health care, insurance providers and employers to cover or offer a broad range of transgender reassignment surgeries and procedures with no religious exemptions to faith-based institutions or religious employers.

Failure to comply with the new rules could result in loss of Medicaid or Medicare funding, triple compensatory damages or civil penalties.

O'Connor stated in his ruling that the regulation violates the Administrative Procedure Act, which governs how federal agencies may propose and establish regulations. He added that it also likely violates the federal religious freedom protections of the plaintiffs.

"While this lawsuit involves many issues of great importance—state sovereignty, expanded healthcare coverage, anti-discrimination protections, and medical judgment—ultimately, the question before the Court is whether Defendants exceeded their authority under the ACA in the challenged regulations' interpretation of sex discrimination and whether the regulation violates the Religious Freedom Restoration Act as applied to Private Plaintiffs," the order stated, as reported by The Texas Tribune.

The White House and HHS have both expressed disappointment with the ruling.

"Today's decision is a setback, but hopefully a temporary one, since all Americans — regardless of their sex, gender identity or sexual orientation — should have access to quality, affordable health care free from discrimination," White House spokesperson Katie Hill told BuzzFeed News.

HHS spokesperson Marjorie Connolly said that the agency was "disappointed by the court's decision to preliminarily enjoin certain important protections against unlawful sex discrimination in our health care system."

The preliminary injunction came on the same day the Catholic Benefits Association (CBA), the Diocese of Fargo and Catholic Charities North Dakota filed a lawsuit against the regulation in the U.S. District Court in North Dakota.

Another lawsuit against the health care mandate was filed by the Becket Fund on behalf of the Sisters of Mercy, the University of May and SMP Health System in the U.S. District Court in North Dakota on Nov. 7, 2016.

O'Connor was the same judge that blocked the guidelines that required schools to allow transgender students to use bathrooms consistent with their gender identity.