The publication of a government decree in Peru, which aimed to expand access to mental health care for transgender individuals by including them in the coverage of private and public insurance, sparked controversy. The decree classified transgender identity as a "mental health problem," leading to outrage among the LGBTQ community and advocates. The use of outdated language from the World Health Organization's classification system, which labeled transgender identity as a mental and behavioral disorder, further fueled the backlash. While Peruvian health officials claimed that the intention was to facilitate insurance coverage for transgender-related treatments, they acknowledged the miscommunication and clarified that gender and sexual diversity are not illnesses. Critics argued that the classification as mentally ill could perpetuate stigma and open the door to conversion therapy. Peru's lack of legal recognition and protection for LGBTQ rights and the prevalence of discrimination and violence against the community were highlighted. The controversy reflects the ongoing struggle to advance LGBTQ rights and healthcare in Latin America, with Peru lagging behind its South American neighbors in terms of legal protections and societal acceptance for LGBTQ individuals. The decree's impact on the stigmatization and well-being of transgender people has raised concerns, highlighting the need for more comprehensive consultation with LGBTQ mental health experts and advocates.