President Trump has begun sending $500 "refund" checks, along with a signed letter taking credit for the payments, to Americans who get their health insurance through the Affordable Care Act. The letter assails the Biden administration and Obamacare while touting the Trump administration's efforts to lower health care costs. The money is reaching nearly a million Americans less than a month before the midterm elections, offering a last-minute financial boost to voters who will decide whether Republicans keep control of Congress.
"For years, the Biden administration overcharged you to fund the operation of Health Care.gov," Mr. Trump wrote. "That money belongs to hard-working Americans, not the government, and now, I am returning it to you!" The money comes from a fund used to oversee the insurance marketplaces. It built up a surplus because so many people enrolled during the Biden administration and because the Trump administration cut back on uses such as advertising and enrollment assistance. The checks are one-time payments, and consumers will face high insurance prices again next year. Insurers are asking for increases of around 15 percent when enrollment opens on Nov. 1.
After failing to repeal the Affordable Care Act, Mr. Trump and Republicans have weakened the 2010 health law by curbing insurance subsidies. The checks benefit consumers who faced steep premium increases this year after Congress did not extend the more generous tax credits approved during the pandemic. Farmers, ranchers, entrepreneurs and early retirees earning more than about $65,000 a year without job-based coverage could receive the money. People in 30 states who bought Obamacare insurance on Healthcare.gov without a federal subsidy are eligible, according to a White House fact sheet. Residents of states that run their own marketplaces, including California, New York and the District of Columbia, will receive nothing.
Separately, the administration issued $90 direct deposits to 20 million senior citizens to offset Medicare premiums, funded by the Medicare Improvement Fund. The timing comes as polls suggest Republicans could lose control of the Senate and House in November. Mr. Trump has previously promised financial handouts before elections, and last month floated mailing $5,000 to households next year if Republicans keep their majorities.
In his letter, Mr. Trump took credit for lowering drug prices and rooting out health care fraud. "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," he said.
Source: New York Times Business · Summarized by HeadlinesBriefing