According to District Judge Reed O'Connor, the rule defines sex bias to include "discrimination on the basis of gender identity and termination of pregnancy".
Paxton says that the impact of the new rule on the state and health care workers is huge because it forces doctors and medical workers to provide sex transition services and it may be against their medical judgment or religious beliefs to do so.
The lawsuit was brought by Texas, Wisconsin, Kentucky, Nebraska and Kansas, as well as the Christian Medical and Dental Association, and Franciscan Alliance. "I am disappointed in the Obama Administration's lack of consideration for medical professionals who believe that engaging in such procedures or treatment violates their Hippocratic Oath, their conscience, or their personal religious beliefs, which are protected by the Constitution and federal law".
[The rules place] substantial pressure on Plaintiffs to perform and cover transition and abortion procedures.
[U] ltimately, the question before the Court is whether Defendants exceeded their authority under the ACA in the challenged regulations' interpretation of sex discrimination and whether the regulation violates the Religious Freedom Restoration Act as applied to Private Plaintiffs.
The U.S. Department of Health in July implemented a rule under the Affordable Care Act that interpreted the definition of sex as it pertains to a person's gender as a state of mind, not a biological fact.
White House spokeswoman Katie Hill called the injunction a setback.
Under the health rule, federal protections against discrimination based on sex extend to gender identity.
On the other side, Texas Attorney General Ken Paxton issued a statement obtained by LawNewz.com on Sunday that hailed the ruling, blocking rules set to take effect today, saying it would "force the Employees Retirement System of Texas to amend its insurance coverage for all 500,000 participants to provide for gender reassignment and abortion".
Judge O'Connor sided with the state in this instance.
Earlier this year the judge ruled that a separate policy, which would require public schools to allow trans students to use the bathroom of their choice, should also be thrown out.