How To Afford Transgender Surgery Expenses – Forbes Advisor

Transgender surgeries — also known as gender confirmation or gender-confirmation surgeries — are medical procedures you can undergo to confirm your gender identity.

The cost of these types of surgeries is often high, and health insurance coverage for them can vary by policy. “Even if a procedure is covered by insurance, there are still deductibles and maximum deductibles,” said Wynne Nowland, CEO of Bradley & Parker, who left at 56. Surgeries that are purely cosmetic may not all be covered by insurance.

The good news is that there are several financing options that you can use to pay for the procedures. Some organizations even offer grants and scholarships that can help you afford the cost of the surgery.

How much does transgender surgery cost?

Transgender surgery costs can vary depending on the provider and the type of surgery you choose. For a female-to-male transition, breast masculinization surgery (also known as top surgery) could cost $3,000 to $10,000, while breast surgery for a male-to-female transition could cost $5,000 to $10,000, according to Longwood Plastic surgery

The Philadelphia Center for Transgender Surgery estimates butt surgeries like vaginoplasty or phalloplasty can cost $25,600 and $24,900, respectively. Additional procedures can increase transition costs from there. In addition to the actual costs of the operation, there may also be other hidden costs.

For example, according to Nowland, if you don’t have a good support system, you might need help at home during recovery. Travel and hotel expenses may also be incurred, which are usually not covered by insurance. Nowland says the best way to prepare for surgery is to contact insurance to discuss coverage and plan to save the funds you need to proceed.

If you’re considering borrowing money to pay for surgery and recovery costs, here are four options to consider.

4 Ways to Fund Transgender Surgery Expenses

Personal loans, credit cards, medical credit cards, and home equity loans are products that can help you pay for transgender surgery costs over time. Here’s what you need to know about each:

Personal Loans

Personal loans are typically unsecured installment loans that offer a lump sum that you can use on almost any legal personal expense, including medical bills. Lenders can offer loans ranging from $1,000 to $100,000. However, your credit rating and income may affect the loan size and interest rate.

The average annual percentage rate (APR) for a five-year personal loan as of September 19, 2022 is 15.93%, but rates can increase as high as 36% APR. The good news is that many lenders allow you to pre-qualify online for personal loans without a tough credit check, so you can research interest rates and compare costs before borrowing.

credit cards

Credit cards give you access to a line of credit that you can use to cover medical bills. You then pay off the balance over time. While certain credit cards have annual fees, many don’t. Some credit cards even offer a 0% introductory interest rate for a number of months when you open a new account.

After the interest-free period, standard interest rates apply, but charging and paying off procedures during the interest-free period could be an affordable way to fund bills. However, credit cards are usually best for expenses that you can repay relatively quickly, since interest rates can be higher than personal loans, making it costly to maintain a large balance over several years.

Medical credit cards

Medical credit cards are designed specifically for medical bills and may be a funding option recommended by your doctor’s office.

CareCredit is a popular medical credit card that offers interest-free financing plans of six, 12, 18, or 24 months for transactions over $200. However, there is a catch: If you do not pay off the remaining amount during the term, interest will be charged retrospectively from the time of your purchase.

CareCredit offers extended financing periods of 24, 36, 48 or 60 months for purchases of USD 1,000 or more. The APR for payment plans is fixed, ranging from 14.90% to 17.90%, depending on how much you borrow and the term you choose.

home equity loans or lines of credit

If you own a home, home equity loans and home equity lines of credit (HELOCs) are ways to borrow the equity you’ve built. Here’s how both options work:

• Home Loans: A home equity loan is an installment loan that allows you to borrow money in a lump sum to help pay for transgender surgery. Homeowners can typically borrow up to 85% of the home equity, and loan terms can range from five to 30 years.
• HELOC’s: These are lines of credit that you can draw down and repay at a variable interest rate. A HELOC might be a better alternative to a home equity loan if you have ongoing expenses because it gives you the flexibility to borrow only what you need and pay it back as needed.

The benefit of home equity medical expense products is that the interest rates can be lower than unsecured personal loans because the collateral (your home) minimizes the risk for the lender.

However, since your home secures the transaction, you could lose your home if you can’t keep up with the loan payments. If your home’s value goes down, there’s also a chance that you’ll flood the house if you end up owing more on your mortgage and loan than the house is worth.

Can you get grants for transgender surgery?

Several organizations offer grants to cover transition costs, including gender-affirming surgeries, which is money you don’t have to pay back. Grant funding requirements may vary, but in some cases you will need to show that you have saved some money yourself in order for the operation to receive funding. Here are some examples of organizations offering scholarships:

• Jim Collins Foundation: The Jim Collins Foundation offers two grants. Grants from the General Fund can cover all costs of gender-affirming surgery, while grants from the Krysallis Anne Hembrough Legacy Fund can cover 50% of surgical costs for recipients matching the grant funds awarded.
• Proud: Point of Pride offers an annual grant-like program that provides financial support for gender-affirming surgeries.
• The Loft LGBTQ+ Community Center: TransMission’s grant funds through the Loft LGBTQ+ Community Center are insufficient to cover the full cost of the operation. However, grants can be used to fund therapies, hormones, and other transitional costs.

Tips on Paying Transgender Surgery Expenses

When creating a plan and looking for ways to pay for surgeries, consider the following tips:

• Check your insurance policy. Read the insurance conditions carefully and contact your insurer to find out what surgeries are covered. “As with all covered insurance procedures, you must expect some bureaucracy, but your patience will be rewarded,” Nowland said.
• Use a Health Savings Account (HSA) or Flexible Spending Account (FSA). HSAs and FSAs are both tax-deferred accounts designed to help you save money on medical expenses, which may include gender reassignment surgeries. You can make pre-tax contributions from your salary to both accounts if you set them up with your employer. If you set up an HSA yourself, you can deduct the contributions from your tax return.
• Consider crowdfunding. Crowdfunding is when you set up a campaign to raise funds. If you prefer to keep medical procedures private, creating a campaign and asking for donations may not be the way to go. But if you feel comfortable sharing your story, setting up a GoFundMe or Fundly donation page could be a way to help cover the cost of your operations. Bonfire is another site where you can raise funds by selling personalized t-shirts.
• Get support from family and peers. Having friends or family members who can give or lend you money can be cheaper than taking out a loan from a bank, online lender, or credit union.

How to save up for gender-affirming surgery

Using a combination of funding sources is one strategy that could help you rely less on credit.

Different surgeons charge different fees, so compare prices to project costs. From there, you can determine how much you need to save and by when. If you don’t use an FSA or HSA to save, consider stashing your savings for surgeries in a high-yield savings account so your savings earn more interest than you would in a traditional savings account.

Certain saving tools can make saving easier. For example, banks often have recurring transfer features that you can set up to automatically transfer money from a checking account to your savings on a schedule. There are also savings apps like Digit, which can connect to your bank account, use an algorithm to check your cash flow, and automatically set aside excess money for you. Your savings can grow over time, allowing you to pay for treatments and surgeries as needed.