Texas Sues Hospital & Doctor Over Gender Transition Care for Children | Fraud Allegations

Texas Attorney General Sues Pediatric Hospital, Doctor Over Gender-Affirming Care

Austin, Texas – Texas Attorney General Ken Paxton has filed a lawsuit against Children’s Health System of Texas, the seventh-largest pediatric hospital in the United States, and Dr. Jason Jarin, a division director at the hospital, alleging they illegally provided gender-affirming care to minors and fraudulently billed the state’s Medicaid program. The civil suit, announced on February 18, 2026, seeks over $1 million in damages and aims to halt further provision of such care. This action is the latest in a series of legal challenges by Paxton targeting medical providers offering gender-affirming care in Texas, following a 2023 state law banning these treatments for minors.

The lawsuit alleges that Children’s Health, and Dr. Jarin engaged in a scheme to bill Texas Medicaid and the Children’s Health Insurance Program (CHIP) for gender interventions, including puberty blockers and cross-sex hormones, administered to children as young as nine years old. Paxton claims these procedures violate Texas law and constitute healthcare fraud. He stated, “I will utilize every legal tool available to ensure radical gender activists like Jarin face justice for hurting our kids,” adding that “Experimental ‘transition’ procedures on minors are illegal, unethical, and will not be tolerated in Texas.” The legal action was filed in the District Court of Collin County, Texas, according to documents released by the Attorney General’s office. Attorney General Paxton’s announcement details the allegations.

Neither Children’s Health nor Dr. Jarin immediately responded to requests for comment, as reported by multiple news outlets. Dr. Jarin is described in the lawsuit as a pediatric gynecologist who regularly prescribed puberty blockers and cross-sex hormones to both male and female patients. The Attorney General’s office alleges that the hospital and doctor continued to bill Medicaid for these services even after Senate Bill 14 (SB 14) took effect on September 1, 2023, effectively banning gender-affirming care for minors in Texas. KERA News reported on the details of the lawsuit and the timeline of events.

Allegations of Fraudulent Billing Practices

The lawsuit further contends that Children’s Health and Dr. Jarin violated the Texas Health Care Program Fraud Prevention Act by allegedly manipulating patient claims submitted to Texas Medicaid. Specifically, the Attorney General’s office claims the defendants repeatedly altered patients’ gender information on claims to secure payment for services deemed illegal and unallowable under Texas law. The suit alleges that transgender-related claims were falsely billed as treatments for endocrine disorders, and that puberty blockers were administered to children without a legitimate medical demand, falsely presented as treatment for precocious puberty. Examples cited include hormone replacement therapy billed under codes intended for genuine hormone deficiencies, and cross-sex estrogen hormones given to boys being billed as contraception implants.

According to the Attorney General’s office, these deceptive practices resulted in Texas taxpayers being billed “millions of dollars” for gender transition procedures, hormones, and related care for children and young adults. The lawsuit asserts that these procedures effectively turn “healthy children and young adults into chronic patients.” The Attorney General’s office alleges that the defendants falsified or misrepresented medical records, prescriptions, and billing submissions to pharmacies, insurers, and Medicaid to facilitate these fraudulent claims.

Broader Legal Campaign Against Gender-Affirming Care

This lawsuit is not an isolated incident. Attorney General Paxton has been actively pursuing legal action against medical providers in Texas who offer gender-affirming care to minors. In 2024, Paxton filed three separate lawsuits against doctors in Dallas and El Paso, alleging they illegally prescribed hormones prohibited under SB 14 to patients as young as 12 years old. Law360 reported on the broader context of these legal challenges.

Following those earlier lawsuits, the Texas Attorney General’s office secured court orders restricting those doctors from practicing medicine while the cases were pending. A news release from February 4, 2025, stated that these restrictions were position in place to prevent further violations of SB 14. The legal battles reflect a growing national debate over the rights of transgender youth and the role of medical professionals in providing gender-affirming care. Senate Bill 14, signed into law in 2023, prohibits puberty blockers, hormone therapy, and surgical procedures for transgender minors in Texas, marking a significant restriction on access to care for this population.

Understanding Senate Bill 14 and its Impact

SB 14, officially known as the “Save Our Kids Act,” represents a cornerstone of Texas’s legislative efforts to restrict gender-affirming care for minors. The law prohibits healthcare providers from providing puberty blockers, hormone replacement therapy, or surgical procedures to transgender youth. It also allows individuals who previously received such care to sue providers. Supporters of the law argue it protects children from making irreversible decisions and safeguards their future health. Opponents contend that it denies transgender youth access to medically necessary care and infringes upon their rights and the rights of their parents to make informed healthcare decisions. The law has faced legal challenges from civil rights groups and families of transgender children, who argue it is discriminatory and unconstitutional.

The legal landscape surrounding gender-affirming care is rapidly evolving. Several states have enacted similar restrictions, while others have taken steps to protect access to such care. The debate centers on the medical consensus regarding the benefits and risks of gender-affirming care, the rights of transgender individuals, and the role of government in regulating healthcare decisions. The outcome of these legal battles will have significant implications for transgender youth and their families across the country.

The current lawsuit against Children’s Health and Dr. Jarin adds another layer to this complex legal and ethical debate. The Attorney General’s office is seeking a temporary injunction to halt the provision of gender-affirming care by the defendants and to prevent them from submitting further claims to Texas Medicaid. The case is expected to draw significant attention from legal experts, medical professionals, and advocacy groups on both sides of the issue.

As of February 19, 2026, no court date has been set for a hearing on the temporary injunction request. The defendants have not yet filed a formal response to the lawsuit. Further updates on this case will be available on the Texas Attorney General’s website and through ongoing reporting from credible news sources.

What happens next? The Collin County District Court will need to rule on the Attorney General’s request for a temporary injunction. A hearing date has not yet been scheduled. The court will then consider the merits of the case and determine whether Children’s Health and Dr. Jarin violated Texas law. The outcome of this case could set a precedent for future legal challenges to gender-affirming care in Texas and beyond.

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