Visa Faces Shareholder Challenge Over Gender Transition Health Coverage Policies

Visa, Inc. will face a significant shareholder proposal at its January 28 annual meeting, challenging the company's healthcare coverage policies related to gender transition procedures. The National Legal and Policy Center (NLPC), a Visa shareholder, is pressing the company to examine potential risks associated with its current healthcare policies, particularly concerning individuals who later seek to reverse gender transition procedures.

The proposal raises important questions about corporate liability and healthcare equity at a time when detransitioner lawsuits are increasing nationwide. Claire Abernathy, a 20-year-old detransitioner, will address Visa's board about her experience with transition procedures beginning at age 12, highlighting concerns about insurance coverage for reversal procedures.

The challenge comes amid growing scrutiny of corporate healthcare policies covering gender-related procedures. The NLPC's proposal points out that Visa's current insurance coverage through CIGNA includes various gender transition procedures for employees and their dependents, while potentially lacking coverage for detransition care.

The issue carries significant implications for corporate America, as the Equal Employment Opportunity Commission considers failure to provide equivalent benefits based on gender identity and sexual orientation discriminatory. The Securities and Exchange Commission has already acknowledged detransitioning individuals within such protected classifications, suggesting potential legal and regulatory consequences for companies' healthcare policies.

This development signals a broader trend of increasing shareholder activism around healthcare coverage policies, with similar proposals already presented at major corporations including Johnson & Johnson and PepsiCo. For businesses, the debate highlights emerging challenges in balancing inclusive healthcare policies with potential legal and ethical responsibilities to employees seeking detransition care.