WASHINGTON — The Trump administration is promising $500 rebate checks to an estimated 1 million Affordable Care Act enrollees across 30 states, who the White House alleged were overcharged by the Biden administration for exchange fees.
The promise comes after Trump pledged Wednesday to send every American adult $5,000 if Republicans retain control of the House and Senate in the midterm elections and as affordability has become a central issue for voters heading into November.
“The relief begins with refunding everyone who was overcharged and the rebates are going out in just a few weeks,” President Donald Trump said in a recorded address released on the White House X account Thursday. Enrollees who can expect refunds are those who do not receive premium assistance.
Critics called the move a “gimmick” that doesn’t represent a plan for addressing soaring healthcare costs.
Trump in his address accused former President Joe Biden’s administration of “gross mismanagement” of ACA funds, without providing evidence, and said that the Biden administration collected user fees from insurance companies that consumers paid through higher premiums.
In a fact sheet, the White House claimed that Biden’s administration “accumulated a significant surplus of funds that were not used to benefit the Americans who paid these higher premiums.” It said the rebates would be sent out beginning next month.
It is unclear whether the $500 rebate represents what each enrollee may have overpaid, where the money for the rebates would come from and whether it requires congressional approval for disbursement.
Trump’s announcement comes as the price of ACA insurance has skyrocketed for many Americans during his own second term. The Trump administration opposed extending COVID-era subsidies that had helped offset the costs of health insurance for most enrollees during Biden’s term.
After the Republican-led Congress allowed the subsidies to expire this year, premiums doubled or tripled for many enrollees, prompting millions to downgrade their plans or exit the program entirely.
Brad Woodhouse, a Democratic strategist and executive director of advocacy group Protect Our Care, called the rebate plan “an absolute joke” in a statement.
“Since Republicans took away tax credits from working families, millions of people have seen their monthly premiums rise by hundreds, if not thousands, of dollars,” Woodhouse said. “At a time when people are scraping by to keep up with the high cost of groceries, rent, and health care, this $500 gimmick won’t even begin to dig them out of the hole that Trump and Republicans created.”
Officials at the Centers for Medicare and Medicaid Services did not respond to Associated Press requests for comment, and a White House official referred back to the fact sheet.
Roughly 19 million people receive insurance through the Affordable Care Act exchange.
Hussein and Swenson write for the Associated Press.
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