THAT IS FUCKING HORRIFYING!!! I notice it's just for Medicaid, which means you're poor. I hate to sound conspiracy theorist here, but that is really, really, strange to me (I am high so therefore might be thinking too autistic about this), but I would not be surprised if this is a move for the government to experiment legally on people, and let's be honest, no one gives a shit about poor people. No one will care if poor kids get mutilated, because hell, their future isn't that bright anyway.
This is John Money fuckery, except on a larger scale.
Edit: You know how they finally decided that intersex babies shouldn't be operated on until they were older to see how they actually developed? Well, to me, this just seems to be a counter to that, except this time, surgery can be performed on any baby, whether normal or intersex. Oh, mommy had a boy and really wanted a girl. CUT THAT DICK OFF!! or Mommy didn't want a girl, and wanted a boy. TAKE OUT THAT UTERUS AND OVARies AND ATTACH A FLESHDILDO THERE INSTEAD!! I mean, where is this madness going to end?
