Donald Trump’s $500 check from Donald Trump has started arriving in the homes of nearly a million Americans. The letters describe the money as a return of fees used to run HealthCare.gov, and they say it is meant for people who do not receive subsidies for their coverage.
HealthCare.gov Letters
The letters accompanying the checks say, “For years, the Biden Administration overcharged you to fund the operation of HealthCare.gov. That money belongs to hard-working Americans, not the Government, and now, I am returning it to you!” Trump also wrote, “You have paid into this flawed System, and now you are finally getting something back.”
Trump tapped a government fund paid into by health insurance companies for ACA marketplace operations. Those fees help pay for marketing, outreach, and enrollment assistance, and insurers pass part of that cost along in higher premiums.
Cynthia Cox On Trump Fees
Cynthia Cox of KFF said “it’s entirely possible that the funds Trump has promised came from fees collected during Trump’s first term.” KFF estimated that Trump’s first administration had $1 billion in unspent funds after collecting more user fees from insurers than it spent.
The article says there is no evidence for Trump’s claim that the money came from “gross mismanagement” by Biden. It also says the surplus may have been built up during Trump’s first term, before last year’s GOP refusal to extend ACA subsidies helped drive up premiums for the people who are eligible for the checks.
ACA Premium Increases
That split leaves two groups in different positions. The roughly 3 million people priced out of ACA plans because of the lapsed subsidies are not eligible for the checks, while eligible customers have seen premiums increase often by thousands of dollars. The checks have started arriving, but the amount does not come close to the higher bills many recipients face.
For people waiting on the money, the immediate question is practical: whether a $500 payment offsets anything more than a fraction of the premium increase they are already seeing. The checks are moving now, but the subsidy fight that shaped who gets paid and who is left out has not been resolved.
