Trump administration to issue $500 refunds to about 1 million Obamacare users
The White House said $500 checks will be mailed in October to roughly one million people in 30 states who used the federal health insurance marketplace, citing alleged overcharges.
President Donald Trump announced that the administration will distribute $500 million in refunds to approximately one million individuals who purchased coverage through the federal health insurance exchange, Healthcare.gov. The checks are scheduled to be mailed in October and will target residents of 30 states that rely on the federal marketplace.
The White House said the refunds stem from user fees collected from insurers that were passed on to consumers as higher premiums. Officials contend that the premiums exceeded the costs required to operate the exchange, and that the excess will be returned to consumers who did not receive premium assistance under the Affordable Care Act.
The list of states includes Alabama, Alaska, Arizona, Arkansas, Delaware, Florida, Hawaii, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, Wisconsin and Wyoming.
The refund program is separate from a previously announced $5,000 dividend plan for all American adults, which has faced criticism from Democratic lawmakers.
Under the Affordable Care Act, insurers are required to rebate consumers when less than 80% of premium dollars are spent on health care. A health-policy nonprofit estimates that insurers will return more than $500 million to consumers through such rebates.