Checks would go to marketplace consumers in 30 states starting in October
President Donald Trump has promised $500 (£370) refunds to nearly one million Americans who buy health insurance through the federal Affordable Care Act marketplace and do not receive income-based subsidies, the White House announced Thursday.
The payments, framed by the administration as refunds for “Obamacare overcharges” collected during President Joe Biden’s administration, are scheduled to begin going out in October and would reach enrollees in 30 states. Checks will be mailed directly to eligible households, the administration said.
The refund comes amid an 8 million drop in Medicaid and ACA marketplace enrollment since Trump returned to office, with the law’s largest coverage-related changes under the One Big Beautiful Bill Act not yet in effect and expected to take several years to be fully implemented.
In a fact sheet released Thursday, the White House said consumers who do not qualify for income-based subsidies were “most exposed” to marketplace “user fees” that it said were added to premiums. The fact sheet said fees collected under Biden were “far in excess of what was needed to run the exchange” and had created a surplus. It did not specify how large the surplus was or whether there are plans to lower fees and premiums in the near future.
The Affordable Care Act, also known as Obamacare, is the health law passed in 2010 that expanded access to insurance and set national rules for coverage. It created online marketplaces where people can buy private health plans, often with government assistance that reduces monthly costs. The marketplaces are operated either by individual states or by the federal government, and people who buy plans through the federal exchange pay monthly premiums. Those who do not qualify for income-based subsidies pay the full cost themselves, which can run to hundreds of dollars a month.
The refund plan is separate from Trump’s recent pledge to send $5,000 payments to Americans, which are explicitly tied to Republicans winning control of Congress in November’s midterm elections.
Most Democratic lawmakers had not responded publicly to the announcement as of Thursday. They have previously defended the law as a key source of affordable health coverage. Trump attempted to repeal Obamacare in his first term, and in his second has sought to change it. He has repeatedly called for it to be replaced, although he has not outlined a detailed alternative. The rebate plan marks one of his most direct actions involving the law since returning to office.
Payments would cover enrollees in states including Florida, Texas, North Carolina, Ohio, Michigan, and Wisconsin.