President Donald Trump announced on Thursday that rebate checks of $500 will be issued to nearly one million Americans enrolled in Affordable Care Act (ACA) plans. The payments will begin in October and target enrollees in 30 states that utilize the federal Healthcare.gov exchange.
In a video message, Trump characterized the refunds as a remedy for “excessive fees” imposed on Obamacare participants during the Biden Administration. The White House stated that the previous administration passed on costs associated with “user fees” intended to fund the federal exchange through increased premiums, collecting amounts “far in excess” of what was necessary to operate the marketplace.
“Our Administration is doing the right thing and giving the money back to the people who were wrongly ripped off,” Trump said. However, neither the President nor the White House has provided evidence to substantiate these claims.
The announcement follows a significant rise in ACA premiums after tax credits enacted under Biden expired at the end of 2025. Republican-controlled Congress declined to renew the subsidies last year, a move supported by the Trump Administration. Trump had previously proposed alternative rebates of $1,000 to $1,500 deposited into Health Savings Accounts, but that plan failed to pass the Senate.
According to the White House, eligible individuals are those in federal exchange states who did not receive premium assistance and consequently paid the full cost of what the administration termed “Biden’s premium tax.” The nearly one million recipients represent approximately 5% of the estimated 19.2 million people currently enrolled in ACA plans nationwide.
The 30 states included in the refund program are Alabama, Alaska, Arizona, Arkansas, Delaware, Florida, Hawaii, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, Wisconsin, and Wyoming.
This policy shift occurs against a backdrop of escalating healthcare costs. Prior to the expiration of subsidies, ACA enrollment peaked at over 24 million last year. Since then, enrollment has dropped by more than 5 million in 2026 as premiums have doubled or tripled for many enrollees.
Analysts warn that the surge in uninsured Americans could further raise insurance costs for those remaining covered and increase financial burdens on hospitals treating uncompensated care, potentially forcing service cuts or closures. A Pew Research survey conducted in April found that nearly three-quarters of American adults view healthcare affordability as a major problem, an increase of 6% from the previous February.
The issue remains politically sensitive for Trump, who has faced low approval ratings. KFF polling from April indicated that roughly two-thirds of Americans disapproved of the Trump Administration’s handling of healthcare costs. Additionally, Trump recently promised a $5,000 dividend to every American adult if Republicans retain control of Congress in November, a proposal that has drawn criticism regarding its funding and potential legality.
It remains unclear whether the Obamacare refunds require congressional approval to proceed.
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