Trump Announces $500 Obamacare Refunds for Nearly 1 Million Americans in 30 States

President Donald Trump has said nearly a million Americans are eligible to receive $500 refunds for what he described as “excessive fees” charged to Obamacare enrollees under the Biden Administration.

Trump announced in a video message on Thursday that beginning next month, rebate checks will be issued to enrollees in 30 states that use the federal Healthcare.gov exchange to operate their Affordable Care Act (ACA) health insurance marketplaces.

The White House said that the Biden Administration overcharged ACA enrollees for their insurance coverage by passing on the costs of “user fees” intended to fund the operations of the federal exchange in the form of increased premiums. The money collected through those fees, the White House added, was “far in excess” of what was required to run the federal exchange.

“Our Administration is doing the right thing and giving the money back to the people who were wrongly ripped off,” Trump said.

Neither the President nor the White House have provided evidence for their claims.

The announcement comes as ACA premiums have surged after tax credits passed under Biden that helped reduce costs for most enrollees expired at the end of 2025, driving a sharp decline in enrollment.

The Republican-controlled Congress declined to renew the subsidies last year, a decision the Trump Administration backed. Trump previously expressed support for a GOP plan to deposit $1,000-$1,500 rebates into certain American’s Health Savings Accounts as an alternative to renewing the premium subsidies. That proposal ultimately failed in the Senate, however.

The President has also floated issuing other refunds directly to Americans that have failed to materialize, including sending out $2,000 dividends funded by his sweeping tariffs and returning 20% of the savings achieved through the now-shuttered Department of Government Efficiency’s cuts to the federal government.

In an address at the Republican Party’s midterm convention on Wednesday night, Trump separately promised that a $5,000 dividend would be paid to every American adult if the GOP keeps control of both chambers of Congress in the upcoming elections in November.

The proposal, which would require congressional approval, has drawn questions about where the funds for the dividend payments would come from and whether sending them out would violate federal law that bars paying someone to vote a certain way. One Democratic lawmaker was quick to state on X that “Congress would never do it because it is corrupt and blatantly illegal.”

It is not clear whether the promised Obamacare refunds will need to be approved by Congress.

Who’s eligible for an Obamacare refund, and how will you get it?

Refunds will be issued to Obamacare enrollees in the states that rely on the federal exchange who didn’t receive premium assistance under the ACA “and therefore paid the full cost of Biden’s premium tax,” according to the White House.

Checks will be sent starting in October to the home addresses of the Americans the Trump Administration has deemed were overcharged, Trump said. He asserted that in many cases the $500 would cover “the entire spike in your insurance caused by Democrats,” but did not clarify how that figure was reached.

The nearly 1 million people set to receive the refunds would represent roughly 5% of the 19.2 million who are estimated to currently be enrolled in ACA plans around the country.

Which states are included?

ACA enrollees will be issued refunds in the 30 states that use Healthcare.gov to handle insurance enrollment under the landmark health care law, rather than setting up their own state-run exchanges.

Those states 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, according to the White House.

Rising health care costs are a widespread concern—and could be a political problem for Trump

Trump’s pledge to issue refunds to hundreds of thousands of Obamacare enrollees comes amid a spike in health care costs that is a source of major concern for many Americans, and that threatens to only worsen moving forward as the uninsured population balloons.

At the peak of ACA enrollment reached last year, prior to the premium subsidies expiring, more than 24 million Americans were receiving coverage through the marketplace. That number has fallen by more than 5 million in 2026 as premium costs have doubled or even tripled for many enrollees in the absence of the tax credits. And analysts have warned that the impact of their expiration, alongside cuts included in Trump’s Big Beautiful Bill, could become far broader in the years ahead.

The surge in the number of uninsured Americans in turn threatens to raise insurance costs for those who do have insurance and to increase the financial burden on hospitals absorbing the costs of treating people without it, raising the risk that they might be forced to cut services or close entirely.

Nearly three-quarters of American adults surveyed in a Pew Research survey conducted in April said that the affordability of health care is a very big problem for the U.S., an increase of 6% from last February. Even before the ACA premium subsidies expired, Gallup found that fewer than half of Americans reported that they could consistently afford healthcare in the final months of 2025—a five-year high. And polling from health care research organization KFF this May showed that more than a third of adults said they had skipped or postponed getting care because of the cost over the past 12 months.