Mary Matheson said late Sunday that insurance approved and will cover the surgery for her son, who has severe combined immune deficiency.
She said the family "still needs to pay for medical debt, travel and much much more, but we're so blessed about this."
Liam Doxsee has been in and out of hospitals for treatment since he was an infant.
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His family previously said the surgeon qualified to operate on him also practices plastic surgery, so their insurance wouldn't cover it.
They planned to hold a benefit next month to try and raise $53,000 to pay for the surgery.
"It's not a butt lift, it's a pediatric, time-sensitive emergency surgery that he really needs," said Mary Matheson, Liam's mother.
"It's really hard," Liam said. "Because if you were in my body, then you would feel what it's worth."
The "Love For Liam" benefit will be held Jan. 15 in Coal Valley, Illinois.
The video in the player above is from an earlier report from our sister station WLS.