The Canadian province of Ontario is debating whether it should cover sex-change operations. It used to before 1998, but then stopped the coverage.

Most recently, something called a Human Rights Tribunal -- doesn't "tribunal" sound too negative to be associated with "human rights"? -- told the government to pay for few operations that were "interrupted" by the cancellation. But that hasn't become precedent, apparently.
In the U.S., the city of San Francisco covers sex-change operations for city workers.
Fighting to switch [CBCnews)