If we assume that it’s useful as a diagnostic tool (very iffy if there), that’s not a bad thing.
There are people who regret transitioning and currently there’s no way to reliably tell which trans kids are actually trans and which have been manipulated or are just in a phase, thus denying early intervention for many. If it could be reasonably reliably tested for, that’s great.
The insurance part is 100% an American issue. Civilized societies have socialized healthcare.