As a result of the rule that HHS released today, that regulation has been reversed and sex once again refers only to biological sex, as was intended in the statute.
In December 2016, the U.S. District Court for the Northern District of Texas enjoined Section 1557s prohibitions against discrimination on the basis of gender identity and termination of pregnancy. Last fall, the same federal judge vacated the rule, saying that it violated the Administrative Procedure Act and the federal Religious Freedom Restoration Act.
As a result of these rulings, HHS no longer could enforce the Obama-era provision, and todays new rule brings federal policy into compliance with court rulings.
Media CONVENIENTLY leave out 1 very important piece in story about Trump overturning Obama-era protections for transgender people