WASHINGTON — President Trump will send $500 rebate checks to thousands of Americans who bought health insurance on Affordable Care Act exchanges, claiming they were overcharged.
“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 in a video announcement posted on White House social media accounts Thursday morning promoting his ‘Great Healthcare Plan.”
Trump said the payments would be dispatched “in just a few weeks,” meaning thousands may receive them ahead of the Nov. 3 midterm election that will decide control of Congress.
Trump, 80, is pushing a variety of incentives to keep his party in power, including $5,000 tariff dividend checks if Republicans keep their congressional majority.
The Obamacare rebates are another financial tool the president is wielding as he touts his administration’s efforts to help lower the cost of living.
The rebate funds would come from $500 million sitting in federal accounts that was collected during Joe Biden’s presidency. The White House says the Democratic administration collected excessive “user fees” for Obamacare — costs that were passed on to consumers in the form of 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 $500 checks would be limited to those who bought marketplace coverage without federal premium subsidies in 30 states: 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 funds have been sitting in limbo due to arguments over how they should be spent.
The Biden administration suggested providing no-cost contraception for people whose Obamacare plans didn’t cover it, but Republicans in Congress objected so that idea was withdrawn.
Healthcare costs remain a top concern for Americans, according to an April poll from the Kaiser Family Foundation.
Nearly two-thirds (64%) of adults worried about being able to afford medical care, on par with those concerned about gas and transportation costs and outranking other economic issues.
Trump’s ‘Great Healthcare Plan,” which he urged Congress to pass Wednesday night, also includes a crackdown on insurance companies, making lower prescription drug prices permanent and ending surprise medical billing.
The president also vowed to give money to people to allow them direct control over their health insurance, saying: “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.”
