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White House says it will send $500 Obamacare refunds to nearly a million Americans
Reuters • • nation
Key Points:
- The White House announced it will send $500 refunds to nearly one million Americans in 30 states enrolled in Obamacare plans, citing overcharges from user fees passed on as higher premiums.
- These refunds primarily target individuals earning above 400% of the federal poverty level who do not qualify for subsidies, as well as those earning between 100% and 400% who did not receive subsidies.
- The user fees, paid by insurers to operate Healthcare.gov and related services, were set by the Biden administration and included in premiums, leading to a surplus due to reduced spending on enrollment assistance programs.
- Payments will begin going out in October and are unrelated to recent political payment proposals from former President Trump.
- The refund initiative covers states mostly led by Republican governments and reflects an unusual government move to return user fee surpluses to consumers.
