'That money belongs to hard-working Americans': Trump starts $500 ACA refunds
WASHINGTON, DC: President Donald Trump is beginning $500 refunds for nearly 1 million Americans, blaming the Biden administration for excess Affordable Care Act (ACA) exchange fees consumers paid through higher premiums.
The administration stated that the refunds cover excess user fees collected through the federal exchange, which it said consumers ultimately paid through insurance premiums.
Treasury Department checks and letters signed by Trump will begin going out September 30 to more than 950,000 Americans across 30 states, according to an administration official, USA Today reported on Wednesday, September 30.
President Trump says Biden administration overcharged consumers
Trump's letter to recipients directly blames the Biden administration for the charges, saying, "For years, the Biden administration overcharged you to fund the operation of HealthCare.gov," the outlet cited.
The letter said the money should go back to consumers.
"That money belongs to hard-working Americans, not the Government, and now I'm returning it to you!" Trump wrote.
The White House has said health insurance companies paid user fees for the federal exchange and passed those costs to consumers through higher premiums.
It also said the premiums exceeded what was needed to operate the exchange and accused the Biden administration of sitting on the surplus, as per the report.
Trump announced the refunds September 10 in a White House video that coincided with the Republican midterm convention in Dallas.
The $500 payments are separate from the $5,000 dividend Trump has vowed to distribute to all Americans if Republicans retain control of Congress after the November midterm election.
Refunds arrive as ACA costs remain political issue
The checks are being issued five weeks before the November midterm election, as the concerns about high costs and affordability pose political liabilities for Trump Republicans seeking to hold Congress, the report said.
The expiration of enhanced ACA subsidies at the end of 2025 also made insurance more expensive for millions of consumers, according to the report.
Trump and congressional Republicans refused to extend those subsidies.
Trump's letter frames the checks as money returning to recipients. "You have paid into this flawed System, and now you are finally getting something back," he said.
The administration's position on the refund is distinct from the broader question of ACA subsidies.
The report said the refunds involve excess federal exchange user fees, while the expired subsidies affected the cost of insurance for millions of consumers.
Trump's $500 ACA refunds will go to consumers in 30 states
The checks will go to Americans in 30 states that do not operate their own ACA insurance exchanges and instead rely on federal exchanges administered by the Centers for Medicare & Medicaid Services, according to the White House.
Americans in the other 20 states will not receive checks because their states operate their own exchanges and the federal government did not collect user fees there.
Most recipients earn about 400% of the federal poverty line, or about $64,000 for a single person or $132,000 for a family of four, the White House said.
Some recipients fall between 100% and 400% of the federal poverty line.
Trump closed his letter by saying, "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."
