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For this case, with the breast augmentation I can see why they would deny her coverage. But for other trans related expenses, such as hormones, therapy , and SRS(Sexual Reassignment surgery) I think they should provide coverage. Seeing as transgenderism is a document medical disorder.
And its her, not his/hers, that type of language is highly disrespectful.
How is transgenderism a documented medical disorder? The surgery is a cosmetic one and in no way is required to save a life or correct a medical condition.