President Trump is mailing $500 checks to nearly a million Americans with Obamacare coverage.
About 950,000 enrollees across 30 states will receive the payments as early as this week, according to a White House official who spoke. The checks are premised on the Biden administration’s alleged overcharging of user fees to health insurance companies, which then passed higher rates to consumers. Most recipients earn roughly 400% of the federal poverty line — approximately $64,000 for an individual or $132,000 for a family of four — and paid most or all of their premiums without federal subsidies.
“I am proud to return your money to you, and I will never stop fighting to put the American People FIRST, restore Affordability, protect your hard-earned money, and lower the Cost of Healthcare,” Trump wrote in a letter mailed Wednesday.
The letter continued with a direct attack on his predecessor’s administration. “For years, the Biden administration overcharged you to fund the operation of HealthCare.gov. That money belongs to hard-working Americans, not the Government, and now I’m returning it to you!”
Trump added a final message to recipients: “You have paid into this flawed System, and now you are finally getting something back.”
The announcement carries significant political timing. Trump first revealed the $500 checks on Sept. 10 during the Republican midterm convention in Dallas — just one day after he promised all adult citizens $5,000 if the GOP holds control of Congress. That larger proposal alarmed fiscal conservatives worried about accelerating inflation and debt.
Vice President JD Vance announced last week that the administration is saving the Obamacare program approximately $2.2 billion by removing 750,000 users suspected of fraudulent enrollment. About 23 million Americans registered for insurance through Obamacare this year.
The rebate distribution excludes states operating their own independent exchanges. California, New York and Pennsylvania residents will not receive checks. The 30 states included in the program are 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.
Several of those states host hotly contested congressional races on Nov. 3.
This marks the second time Trump has attached his name to direct government payments. He previously signed letters accompanying stimulus checks during the COVID-19 pandemic, as did President Joe Biden.
