TennCare - As enacted, prohibits the division from providing coverage or reimbursement for a medical procedure performed on, or administered to, an individual if the performance or administration of the procedure is for the purpose of enabling the individual to identify with, or live as, a purported identity inconsistent with the individual's sex, or treat purported discomfort or distress from a discordance between the individual's sex and asserted identity. - Amends TCA Title 71, Chapter 5.

HB 2498 prohibits Tennessee's TennCare program from covering or reimbursing medical procedures performed to help individuals "identify with, or live as, a purported identity inconsistent with their sex" or to treat "discomfort from discordance between sex and asserted identity." The bill specifically excludes coverage for gender dysphoria, gender identity disorders, or related mental conditions, but allows coverage for congenital defects, precocious puberty, disease, or physical injury. Existing treatments started before the law's effective date (July 1, 2026) may continue until March 31, 2027, with physician certification required for continuation. The bill directly affects TennCare beneficiaries, particularly transgender and non-binary individuals seeking gender-affirming care.