Trump administration to send $500 Obamacare refunds to nearly 1 million Americans in 30 states

WASHINGTON, DC: The Trump administration on Thursday, September 10, announced that nearly 1 million Affordable Care Act (ACA) enrollees in 30 states will be receiving $500 refunds beginning in October this year.

The White House said the payments are intended for people who bought coverage through the federal ACA marketplace and did not receive financial assistance toward their premiums. The announcement comes less than two months before the midterm elections in November, with healthcare and cost-of-living pressures expected to remain important issues for voters.

Trump White House says refunds will go to eligible ACA enrollees

According to the White House, the payments will be mailed directly to eligible households in states including Florida, Texas, North Carolina, Ohio, Michigan and Wisconsin. The administration said the recipients are primarily people who paid the full cost of their ACA marketplace plans rather than receiving income-based subsidies.

The White House, in a fact sheet on the initiative, said those consumers were “most exposed” to marketplace user fees because they paid their premiums directly. It argued that fees collected during former President Joe Biden’s administration were higher than necessary to operate the federal exchange and resulted in a surplus.

"Our Administration is doing the right thing and giving the money back to the people who were wrongly ripped off," Trump said in the annoucement. 

“President Trump is delivering on promises to lower costs for American patients by putting them first and taking on big health insurance companies, drug manufacturers and other corporate giants that have used the status quo in Washington to raise healthcare costs for Americans,” the White House stated. 

The ACA, commonly known as Obamacare, created insurance marketplaces where consumers can purchase private health plans, with subsidies available to qualifying households based on income. People who do not qualify for subsidies pay the full premium themselves. 

Refund plan comes as ACA premiums rise and subsidies expire

Many ACA consumers have been facing higher healthcare costs. Congress allowed enhanced ACA subsidies introduced during the Covid-19 pandemic to expire, contributing to higher premiums for some enrollees.

A KFF survey conducted in February and March found that 80% of returning ACA marketplace participants said their premiums, deductibles, coinsurance, or copayments had increased compared with the previous year.

The refunds will cover roughly 5% of the 19 million people enrolled through ACA exchanges. The administration said eligible recipients have already been identified and that payments will begin in October.

The user fee itself is paid by insurers that sell plans through the federal Healthcare.gov marketplace. The fee helps fund the website, call center, and groups that assist consumers with enrollment. The fee was set at 1.5% for 2025 and 2.5% for 2026 under rules finalized by the Biden administration. The Trump administration then subsequently reduced the fee to 1.9% for 2027.

The $500 refunds are also separate from Trump’s recently announced  $5,000 dividend funds to adults if Republicans retain control of both chambers of Congress in November. That proposal has not yet been approved by Congress.