White House says it will send out $500 Obamacare refunds
It said "user fees" passed on to consumers in the form of higher premiums by President
Obamacare plans, created by Democratic President
Millions of people dropped coverage this year as rising medical costs and the expiration of extra COVID-19 pandemic subsidies made monthly premiums unaffordable. People on the higher end of the income scale who lost those subsidies were among the hardest hit.
Health insurers who offer plans under the ACA on Healthcare.gov pay the government a user fee to sell plans on the federal exchange, set annually by the
According to a
The official confirmed these payments are unrelated to the
The
The states involved in the payments, most of which are Republican-led, are
User fees
The user fees help pay for the Healthcare.gov website, its call center and grants to "navigator" groups that assist people in enrolling in the plans, said
The fee is set about a year in advance. The 1.5% rate for 2025 and the 2.5% rate for the current 2026 plan year were finalized by the Biden administration, which projected higher fees to offset an expected enrollment drop when the pandemic subsidies expired.
The Trump administration's first payment rule, issued in May, cut the fee to 1.9% for 2027.
Insurers build the fee into premiums, so consumers do not see it as a separate charge. A surplus does not mean consumers were overcharged, Cox said, attributing it largely to the current administration's decision to cut spending on programs like the navigators while continuing to collect the fee.
The rationale for limiting refunds to unsubsidized enrollees is that subsidized enrollees have their payments capped as a share of income, Cox explained, so higher premiums are largely absorbed by the government.
Cox said she knew of no precedent for refunding user fees to consumers, though the government issues other rebates regularly.
Distributed by Newsbank, inc.


AM Best Assigns Credit Ratings to USAA Falcon Property & Casualty Insurance Company
Judge: Disabled can’t show assisted suicide law will create ‘duty to die’
Advisor News
- Americans’ sense of overall prosperity still ticks upward
- Turning expanded eligibility into a better coverage plan for federal clients
- Election 2026: Which of Berkeley's 7 ballot measures will pass?
- How advisors can help frugal retirees finally enjoy their savings
- Wealth planning vs. estate planning: Honoring your client’s wishes
More Advisor NewsAnnuity News
- Jackson reports record annuity sales, increases share repurchase authorization
- Why the market doesn’t need more carriers
- Equitable, Corebridge steam toward merger with strong Q3 annuity sales
- Jackson Announces New Annuity Offering for AARP Members
- National Life Group expands annuity portfolio
More Annuity NewsHealth/Employee Benefits News
- Centene Corp. (NYSE: CNC) Reaches Fresh 52-Week High in Wednesday Trading
- Federal judge blocks Medicaid work requirement rule
- Patients caught in coverage dispute
- It’s time to review your health insurance options for 2027
- Indiana Medicaid chief warns changes needed to avoid ‘catastrophic situation’
More Health/Employee Benefits NewsLife Insurance News
- Why the market doesn’t need more carriers
- Unum Group Reports Third Quarter 2026 Results
- First American Financial Corporation Appoints Darryl D. Button to Board of Directors
- Corebridge Financial Announces Third Quarter 2026 Results
- MassMutual announces record $3.3 billion policyowner dividend for 2027
More Life Insurance News