The Donald Trump administration promises $500 refund checks to approximately one million people enrolled in the Affordable Care Act (Obamacare) in 30 states. According to the White House, these people were affected by “excessive charges” due to insurance market fees imposed by the Joe Biden administration.
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This promise comes after Trump committed on Wednesday to send $5,000 to every American adult if Republicans retain control of the House of Representatives and the Senate in the midterm elections, and in a context where affordability has become a central issue for voters ahead of November.
According to the White House, the refunds—which will begin to be sent in October—are intended for people in 30 states who purchase health insurance through the federal marketplace and do not receive financial assistance.
Authorities indicated that these payments aim to reimburse Americans who faced higher premiums and paid the full cost of their plans.
“The relief measure starts with reimbursing all people who were overcharged, and payments will be sent within a few weeks,” said President Donald Trump in a recorded message posted Thursday on the White House’s X account. The affiliates who can expect to receive refunds are those who do not receive premium payment assistance.
Critics called the measure a “publicity stunt” that does not constitute a plan to address the soaring costs of healthcare.
Obamacare is the health law passed in 2010 that expanded access to insurance and established national coverage standards.
It created online marketplaces where people can purchase private health plans, often with government assistance that reduces monthly costs.
The insurance marketplaces are managed either by individual states or by the federal government, and people who purchase plans through the federal marketplace pay monthly premiums. Those who do not qualify for income-based subsidies pay the full cost on their own, which can amount to hundreds of dollars per month, details the BBC.
According to The Associated Press, approximately 19 million people obtain insurance coverage through the Affordable Care Act insurance marketplace.
Enrollment in Medicaid—the public health insurance for low-income people—and in the Obamacare insurance marketplaces has decreased by about 8 million people since Trump returned to office.
