President Trump announced Thursday that $500 rebate checks will soon reach nearly one million Americans who purchased health insurance through Affordable Care Act exchanges.
The 80-year-old president revealed the disbursement in a video posted to White House social media accounts, framing the payments as refunds for excessive charges collected during Joe Biden’s presidency. The funds, totaling roughly $500 million, had remained in federal accounts amid disputes over their proper use.
“Our administration is doing the right thing and giving the money back to the people who were wrongly ripped off. Nearly 1 million hardworking Americans in 30 states will soon be getting refunds of $500 each, with a check sent to their home address,” the president said.
Trump indicated the checks would be dispatched “in just a few weeks,” a timeline that could place them in mailboxes before the Nov. 3 midterm elections determining congressional control.
The rebate program targets consumers in 30 states who bought marketplace coverage without federal premium subsidies: 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 White House contends the Biden administration collected excessive “user fees” for Obamacare that were passed to consumers through higher premiums.
“Our administration has discovered that under Sleepy Joe Biden, American households buying health insurance through the Obamacare exchange, which is a disaster, and the healthcare.gov were massively overcharged,” Trump said.
The Biden administration had previously proposed using the funds for no-cost contraception coverage in certain Obamacare plans, but withdrew the idea following Republican objections in Congress. Whether congressional approval is required for Trump’s rebate plan remained unclear Thursday.
Healthcare costs persist as a pressing concern for Americans, with an April Kaiser Family Foundation poll finding 64% of adults worried about affording medical care, matching anxiety over gas and transportation costs and surpassing other economic worries. Approximately 19 million people currently receive insurance through the ACA exchange.
The rebate checks represent one of several financial incentives Trump has promoted to bolster Republican prospects in November. He has also floated $5,000 tariff dividend checks contingent on the GOP maintaining its congressional majority.
Beyond the rebates, Trump’s “Great Healthcare Plan,” which he urged Congress to pass Wednesday night, proposes stricter oversight of insurance companies, permanent lower prescription drug prices, and elimination of surprise medical billing.
“We will pass the Great Healthcare Plan to stop all government payments to big insurance companies, and give the money directly to the people, for you to buy your own healthcare and have money left over,” the president said.