Refund checks of $500 will be issued to nearly a million Americans enrolled in Affordable Care Act health plans beginning Wednesday, Sept. 30, with the Trump administration claiming users were overcharged.
A sheet from the White House referred to the ACA as the "Unaffordable Care Act" and stated that the Biden administration "accumulated a significant surplus of funds that were not used to benefit the Americans who paid these higher premiums."
The payments are expected to total about $500 million and will be issued to roughly 950,000 U.S. residents in 30 states that do not fully operate their own ACA insurance plans. North Carolina and South Carolina are among the 30 eligible states.
With first payments being issued Sept. 30, here's what to know.
Why is Trump issuing $500 payouts?
The White House's report on the payouts claims that the Biden administration "overcharged Americans through Obamacare plan exchange 'user fees' that were passed on to consumers in the form of higher premiums, funding the operations of the federal Obamacare exchange far in excess of what was needed to run the exchange."
The webpage explains that the $500 payouts are refunds of the excess fees to U.S. residents who do not receive assistance under the ACA "and therefore paid the full cost of Biden’s premium tax."
The refunds will primarily go to people who purchased health insurance through HealthCare.gov but did not receive federal premium subsidies and therefore paid the full cost of their premiums, according to the White House. Eligible parties do not need to apply and will receive the payments automatically.
Which states are getting $500 ACA payouts? Are ACA payouts going to North Carolina?
The 30 states where some residents will receive refund checks are states that do not fully operate their own ACA insurance plan, relying at least in part on federal exchanges administered by the Centers for Medicare & Medicaid Services, according to the White House.
The 30 states set to receive ACA payouts include 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.
How many U.S. residents are enrolled in the Affordable Care Act?
According to a study published June 26 by the Office of the Assistant Secretary for Planning and Evaluation, an estimated 19.2 million U.S. residents are enrolled in ACA Exchange plans.
Iris Seaton is the trending news reporter for the Asheville Citizen Times, part of the USA TODAY Network. Reach her at iseaton@citizentimes.com.
This article originally appeared on Asheville Citizen Times: Trump starts $500 ACA refunds today. Who's eligible in North Carolina
