Trump administration issues $500 refunds to millions of Obamacare users in 30 states
The Treasury is sending $500 checks to about 950,000 people who purchased health coverage through the federal exchange and did not receive premium subsidies, citing a surplus from the exchange's user fee.
The U.S. Treasury has begun issuing $500 refund checks to roughly 950,000 individuals in 30 states who bought health insurance through the federal HealthCare.gov marketplace without receiving premium subsidies, according to a White House official. Each payment is accompanied by a letter from President Donald Trump stating that the refunds come from a surplus accumulated from the exchange’s user fee.
The letter claims the surplus resulted from “overcharging” by the previous administration and describes the refunds as a “one-time” return of funds to consumers who paid the full cost of coverage. The three states with the highest number of recipients are Texas, Florida and Ohio. Recipients in other states, including North Carolina and Michigan, are also slated to receive the checks.
The refunds apply only to consumers in states that rely on the federal exchange rather than a state-run marketplace. Those who received premium tax credits or who are enrolled in other government health programs are not eligible. The administration said the user-fee surplus has been reduced after the refunds were allocated.
The initiative was first announced in September and is presented as part of broader efforts to lower health-care costs, including negotiations with pharmaceutical manufacturers and expansions of health-savings accounts.