Trump administration to issue $500 refunds to nearly 1 million Obamacare enrollees in 30 states
The White House announced a $500 one-time payment for about one million people enrolled in the federal ACA marketplace, targeting middle-income households in 30 states, as health-care costs rise after premium subsidies expired.
The White House said on Thursday that the federal government will distribute $500 refunds to roughly one million individuals enrolled in the Affordable Care Act marketplace in 30 states that rely on the federally run exchange. The payments, estimated to total about $500 million, are aimed primarily at middle-income households that do not receive existing premium subsidies.
The refund program will begin in October and is funded from a surplus of user fees collected from insurers participating in the ACA exchanges. The administration described the refunds as a response to higher insurance costs it attributes to previous policy decisions.
The eligible states include 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. States that operate their own exchanges are not covered by the program.
Health-policy experts said the refunds are modest relative to the premium increases that followed the expiration of enhanced ACA subsidies at the end of 2025. Jonathan Oberlander, a professor of health policy at the University of North Carolina, called the measure “a band-aid” and suggested it is more about “damage control” ahead of the 2026 congressional elections. Larry Levitt, executive vice president for health policy at the Kaiser Family Foundation, noted that while middle-income enrollees will welcome the checks, the $500 amount is small compared with the thousands of dollars many are now paying for uncovered premiums.
The announcement comes as the administration also discussed a separate $5,000 “election dividend” that would be sent to every adult U.S. citizen if Republicans retain control of Congress in the upcoming midterm elections.