A lawsuit filed on behalf of 700 Catholic employers, including hospitals, is challenging a new rule by the Obama administration that went into effect on January 1.
The new rule prohibits doctors, hospitals and clinics from discriminating against people who suffer from gender disorders such as Gender Dysphoria and Gender Identity Disorder.
The lawsuit was filed by the Catholic Benefits Association on Dec. 28 in an effort to get its members exempt from the rule.
The rule protects individuals who believe they were born in the wrong body from receiving medical care.
For example, a gynecologist can't refuse to perform a Pap Smear test on a biological woman who identifies as a man. The same goes for a bio man who identifies as a female seeking a vaginal exam if he previously underwent a sex change and has an inverted penis pouch.
Under Obama's new rule doctors can't cite religious objections or claim they are morally opposed to caring for people who suffer from mental disorders related to their sexuality.
The Obama administration claims the new rule will protect women who identify as men who seek hysterectomies as part of their "transition".
"These provisions do not … affirmatively require covered entities to cover any particular procedure or treatment for transition-related care," the rule says.
But doctors argue that removing healthy reproduction organs could leave them open to lawsuits in the future if the patients change their minds and want to have babies.
Not all states are complying with Obama's new rule. According to the Washington Examiner, a Texas Judge slapped down the rule over the weekend.