Josh,
the only insurance that I know of for sure that covers it is Blue Cross Blue Shield of Michigan......has to be BCBS of MICHIGAN. I had that insurance when I had my surgeries done and if you have the "gold" plan (I think that is what it was called, anyway it is the highest plan you can get) it is expensive BUT it paid 100% of my surgeries, I paid NO MONEY out of pocket at all. I have heard that all insurance companies are going to have to offer the SRS surgeries by the end of this year but I'm not positive about that.....just what I heard.
Also if you get a phallo you can get an erection but only with the aid of "rods" ( they are malleable rod implants) inserted in the phallo, after the phallo is all healed. some people have commented on other post and who I have chatted with has lost some or all sensation after the surgeries.....BUT I haven't lost any sensation at all, I have some feeling in the phallo itself all the way to the tip, I had surgeries about 8 years ago now.