Trump promises to send $500 to nearly 1 million Americans for Obamacare 'overcharges'
Eligible Americans in 30 states would begin receiving payments in October, funded by a surplus of fees, the White House said.
Trump pledges $500 payments to nearly 1 million Americans over Obamacare 'overcharges'
US President Donald Trump has said he will send $500 (£370) to nearly one million Americans as refunds for what he called "Obamacare overcharges" gathered during the Biden administration.
According to the White House, the refunds will begin going out in October and will be sent to people in 30 states who purchase health insurance through the federal marketplace and do not get financial assistance.
Officials said the payments are intended to reimburse Americans who faced higher premiums and paid the full price of their plans.
The proposed refunds come in addition to the $5,000 payments Trump recently said he would send Americans if Republicans take control of Congress in November's elections.
It established online marketplaces where people can purchase private health plans, often with government aid that lowers monthly costs.
The marketplaces are run either by individual states or by the federal government, and people who buy plans through the federal exchange pay monthly premiums. Those who do not qualify for income-based subsidies pay the full price themselves, which can amount to hundreds of dollars a month.
In a fact sheet released on Thursday, the White House said these consumers were "most exposed" to marketplace "user fees" that it said were added to premiums.
It also said that fees collected under President Joe Biden were "far in excess of what was needed to run the exchange", and had produced a surplus.
The fact sheet did not specify how large the surplus was, or whether there were plans to reduce fees and premiums soon.
Although most Democratic lawmakers have not yet commented on the announcement, they have previously defended the law as an important source of affordable health coverage.
Trump tried to repeal Obamacare during his first term, and in his second has aimed to alter it. He has repeatedly said it should be replaced, though he has not presented a detailed alternative. The rebate plan is one of his most direct actions involving the law since returning to office.
Medicaid, public health insurance for lower-income people, and Affordable Care Act marketplace enrolment has dropped by about 8 million people since Trump returned to office.
However, the law's biggest coverage-related changes under the One Big Beautiful Bill Act (OBBA) are not yet in force and are expected to take several years to be fully implemented.
Payments would go to people in states including Florida, Texas, North Carolina, Ohio, Michigan, and Wisconsin. The administration said cheques will be mailed directly to eligible households.