U.S. senator wants to know why Medicaid funded sex operations By Alicia Mundy Seattle Times Washington bureau WASHINGTON — The head of the Senate Finance Committee wants Gov. Christine Gregoire to explain why the state's Medicaid system is paying for erectile implants, sex-change operations and breast enlargements. Sen. Charles Grassley, R-Iowa, said, in a letter sent Thursday to Gregoire, that he has asked the inspector general of the U.S. Department of Health and Human Services to look at what he considers dubious expenses discovered in the state's 2004 audit. Grassley, who led the charge in Congress against Medicaid payments for...