Trump sending $500 ACA refund checks to nearly 1 million Americans

The Trump administration said it will start sending refund checks on Wednesday to Affordable Care Act enrollees across the U.S. who it says were “overcharged” by the Biden administration.

Nearly 1 million Americans across 30 states will receive the $500 checks, along with a letter from President Trump. 

“For years, the Biden Administration overcharged you to fund the operation of HealthCare.gov,” Mr. Trump says in the letter, a copy of which was shared with CBS News. “That money belongs to hard-working Americans, not the Government, and now, I am returning it to you!” 

Some families with more than one “affected person” could receive multiple payments via check or direct deposit, an administration official told CBS News. The primary recipients of the checks will be people who earn above 400% of the federal poverty line, the official added.

The states where people are getting refunds rely on federal exchanges administered by the Centers for Medicare and Medicaid Services, which charges a user fee. The White House said earlier this month that it is issuing the refunds because the Biden administration overcharged Americans through those fees and then passed it on to consumers in the form of higher premium costs — what it referred to as a “gross mismanagement of Obamacare.”

“With this Historic Action, my Administration is taking the surplus funds that accumulated from the ObamacarePremium Taxand issuing a one-time $500 REFUND to Americans who use the HealthCare.gov platform to purchase their health insurance, but who do not receive Taxpayer Subsidies to pay for their Coverage,” the president said in his letter. 

Millions of Obamacare recipients are facing higher premiums after Congress last year allowed coverage subsidies to expire. In a KFF poll released in March, half of the respondents said their premiums, deductibles or other costs are “a lot higher” than they were last year.

The Trump administration’s refund effort comes with just over a month to go until the midterm elections and as affordability concerns are weighing on many households. High inflation and gas prices due to the war with Iran have pushed the president’s approval ratings on the economy to near-record lows.