SBUX Starbucks Corporation

By Maitane Sardon 

Seven years ago, Tate Buhrmester made the decision to come out as transgender while working as a supervisor at a Starbucks Corp. store in Austin, Texas.

"When I came out at work, I told my Starbucks partners [as the company calls its employees] to call me by my new name, Tate, and they were very accepting. I never had any problems," he says.

Two things eased Mr. Buhrmester's transition: being able to choose his preferred pronouns and name, and being covered by the Seattle-based coffee chain's medical benefits.

Transitioning can be pricey for individuals who identify with a gender other than the one listed on their birth certificate, as many medical plans don't cover all of the procedures that are available to complete the process. The cost of such surgeries can add up quickly, with some people paying as much as $200,000 for sex-reassignment surgery and related cosmetic procedures, according to the World Professional Association for Transgender Health, or WPATH.

That can lead transgender people to screen out certain companies when looking for a job.

"I know a financial adviser who decided to join Starbucks because the old employer didn't cover any surgery," says the 35-year-old Mr. Buhrmester.

Under the Affordable Care Act, which prohibits sex discrimination by health providers and insurance companies, company health plans in the U.S. can't specifically exclude transition-related care. But the ACA's essential benefits also don't include a list of procedures that health plans must cover.

That means many transgender workers still pay for a good portion of transition-related medical expenses out of their own pockets.

That isn't the case at Starbucks, however, which in 2018 began offering one of the most comprehensive health-benefits packages for transgender workers in the U.S.

The company, which has been covering sex-reassignment surgery since 2012, decided to expand coverage in 2018 to include transition-related procedures that are considered cosmetic, such as breast reduction or augmentation surgery, facial feminization, voice therapy and hormonal therapy.

Starbucks consulted with WPATH when deciding which extended benefits to offer. The organization gave Starbucks a list of transgender care it should include and highlighted the benefits many insurance companies exclude because they don't consider them medically necessary.

"The WPATH told us we were the first company in the world to ask them to help translate their recommended standards of care into a medical benefits policy," says Ron Crawford, vice president of benefits at Starbucks.

Starbucks decided to include procedures that many companies see as cosmetic after experts and transgender people told them these are "essential to becoming who they need to be," says Mr. Crawford.

Experts say cosmetic procedures can help transgender people overcome gender dysphoria -- the discomfort people may feel when there is a conflict between their birth gender and the gender with which they identify -- as well as anxiety and other mental disorders.

"After I came out and transitioned, everything in my life started to align with how I felt. I've also been more confident since then," says Mr. Buhrmester.

Starbucks says the main driver behind its decision to offer such comprehensive benefits stems from its desire to attract great talent that is as diverse as the communities it serves. According to a survey conducted by Deloitte, companies that embrace inclusion are more likely to attract and retain workers, which is critical in an economy where competition for talent is fierce.

"A key topic we hear about from our partners is the importance of being able to bring their whole self to work, and how the fact they can do that at Starbucks really makes our company stand out," says Lucy Lee Helm, Starbucks' executive vice president and chief partner officer. "We know that by investing in our partners, we are investing in the strength of the business."

Mr. Buhrmester says working in a company that is inclusive is one of the reasons he has been at Starbucks for 15 years now.

"I am not very close to my family, so having the support of my workplace has made a difference," says Mr. Buhrmester. "The fact that I am trans hasn't overshadowed people's general perception of me."

Ms. Sardon is a reporter for The Wall Street Journal in Barcelona. Email her at maitane.sardon@wsj.com.

(END) Dow Jones Newswires

October 26, 2019 08:14 ET (12:14 GMT)

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