The Trump administration reportedly plans to hand out $500 rebate checks to as many as one million people who were allegedly overcharged under Obamacare, also known as the Affordable Care Act (ACA).
According to Axios, the administration wants to fire off direct-deposit payments to people in 30 states before the Nov. 3 midterm election. Nothing like a little cash hitting bank accounts right before voters head to the polls.
Where's the money coming from? A $500 million fund made up of surplus fees paid by ACA recipients who were overcharged by insurance companies during the Biden administration, per the report. An official told the publication, "That money was over-collected and just sitting there" in government accounts.
Officials clarified that the refunds are available to Obamacare enrollees who do not receive premium assistance through the program. States with a significant number of recipients eligible for refunds include Alaska, Alabama, Florida, Arkansas, Delaware, Texas, New Hampshire, South Carolina, Wisconsin, Michigan, Mississippi, Missouri and Ohio.
White House did not immediately respond to MarketDash's request for comments.
Trump Touts 'Great Healthcare Plan'
Trump's first-term push to repeal Obamacare failed. He has frequently criticized the Affordable Care Act, referring to it as the "Unaffordable Care Act."
Last year, Republicans proposed several alternatives as enhanced Obamacare subsidies neared expiration. Trump proposed that cash should be sent directly to individuals to shop for coverage themselves, instead of routing money to insurers.
On Wednesday, during the GOP convention in Dallas, Trump spoke about his "Great Healthcare plan," proposing to redirect government payments from major insurers directly to consumers, while pledging to end surprise medical billing, require greater price transparency and make prescription drug price reductions permanent, reported the New York Post.
The timeline for Congress to pass Trump's "Great Healthcare plan" remains unclear.
In July, Health Secretary Robert F. Kennedy Jr. and CMS Administrator Dr. Mehmet Oz stated that they are stepping up efforts to combat alleged fraud in the ACA marketplace, citing more than 1 million enrollees without Social Security numbers on file as a verification concern.
ACA Plans Brace For Higher Premiums
Rising healthcare costs have become a growing concern for Americans amid a broader affordability crisis.
In January, UnitedHealth Group (UNH) CEO Stephen Hemsley, in a prepared testimony to lawmakers, said the company would rebate its 2026 profits to Obamacare plan members, while supporting measures to improve the stability, and affordability of ACA coverage. The CEO said that rising hospital prices, consolidation, specialty care and prescription drug costs, not insurers, are driving higher U.S. healthcare spending.
Meanwhile, companies offering Affordable Care Act marketplace health plans are seeking a median 14% premium increase for 2027. This would mark the second-highest annual premium increase since 2018.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.
