US to issue S$633 Obamacare refunds to nearly a million Americans

• The US government will issue US$500 refunds to nearly one million Americans overcharged for Obamacare in 30 states using federal exchanges, starting October before mid-term elections.
• The refunds respond to a Biden-era "significant surplus of funds" and excess user fees, costing nearly US$500 million, amid concerns about inflation and budget deficits.
• This move follows President Trump's failed attempts to repeal Obamacare and his recent proposal of US$5,000 payments to voters if Republicans keep Congress.

WASHINGTON – The US federal government will issue US$500 (S$633) refunds to nearly a million Americans for Obamacare overcharges, the White House said on Sept 10.

Cheques will be sent to eligible Americans starting in October, it said.

The Trump administration is refunding excess fees to those who were overcharged for their coverage. The refunds are available to those who do not receive premium assistance in the 30 states that use the federal exchange to run their Obamacare markets.

These states 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.

Several of them are those with competitive House and Senate races in the upcoming mid-term elections, such as Alaska, Iowa, Michigan, North Carolina, Ohio, Texas and Wisconsin.

The announcement comes one day after President Donald Trump floated US$5,000 payments to every adult US citizen if Republicans retain their congressional majorities, an extraordinary gambit that highlighted his desperation to avoid major losses in November, which would all but render him a lame duck and trigger congressional investigations into his administration and family businesses. 

The White House said in a statement that it is making the Obamacare-related payments due to what it said was a “significant surplus of funds” accumulated under the Biden administration, which it accused of charging people who used federal exchanges “excess” user fees “in the form of higher premiums”.

Still, sending the payments, which as described by the White House would cost nearly US$500 million, could intensify ongoing concerns about inflation and the nation’s ballooning budget deficits and public debt.

Trump has long tried and failed to repeal former president Barack Obama’s signature healthcare law, and short of that, he has floated the idea of offering direct subsidies to Americans to purchase insurance instead of paying health insurers. REUTERS, BLOOMBERG