In what looks to me like a bare-assed attempt to prop up his poll numbers and possibly buy midterm votes for Republicans, Trump has announced he is sending $90 checks to most seniors and $500 checks to nearly a million Affordable Care Act enrollees.
As I understand it, the senior checks are going to Medicare Part B enrollees whose Medicare premiums are deducted from their Social Security income. That would not include me, since my Medicare premium is paid by Medicaid.
The payments, which I don’t believe were authorized by Congress, are coming from a $2 billion Medicare Improvement Fund that Congress created in 2008 to improve Medicare services. Trump called the fund a “pointless ‘Slush Fund'” in a Truth Social post. The White House said the improvement fund has never been utilized. It may be the fund has never been utilized — I don’t know — but surely that money could have been better spent than just sending a one-time $90 check to seniors that won’t even cover half of the standard monthly premium deduction. Seems stupid to me.
The Treasury Department has already begun sending out the one-time $500 checks to more than 950,000 Obamacare enrollees in 30 states that use the federal exchange, healthcare.gov. The remaining states have their own state-run exchanges.
These checks are being funded through unspent user fees paid by insurers. Insurers offering plans on the federal exchange pay a percentage of collected monthly premiums to fund IT infrastructure, call centers, and consumer outreach. So I guess Trump isn’t spending that money on IT infrastructure, etc.
The checks are going to people who have not qualified for subsidies in the past because they make too much money. In other words, the checks are going to upper-income people. Trump has said that these Obamacare policyholders were “wrongly overcharged” during the Biden administration. While most of the $90 checks going to seniors will actually be direct deposits, the $500 checks are going out in the mail with a letter from Trump.
In his letter, Trump wrote, “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!”
“You have paid into this flawed System, and now you are finally getting something back,” he wrote, listing his efforts to root out fraud, reduce drug prices and boost spending on rural healthcare.
So upper-income people who hadn’t qualified for subsidies are getting a $500 “reimbursement” check from Trump because other, poorer people used to get subsidies so they could afford healthcare. $500 won’t come anywhere close to the difference between subsidized and unsubsidized premiums over a period of years, It also won’t make up for the fact that a now-smaller risk pool means everybody’s premiums have gone up. So the people who weren’t getting subsidies must have seen premium increases since the Big Ugly Bill passed. I can’t say how much those upper income people will be impressed by $500 checks..
Oh, and hospitals all over the country are really struggling because of Trump’s cuts. There are been six closures this year, but many more hospitals have but back or eliminated emergency, obstetrics, and other departments. And there are estimates that hundreds of hospitals will be at risk of closure next year, especially in rural areas.
In other news — and this is actually a bigger deal than Trump’s “love me” checks — do read U.S.-Russia Talks on Ukraine Now Involve an Oil Deal Tied to Trump Allies at the New York Times. It begins:
The Trump administration’s talks with Russia about ending the war in Ukraine have expanded to include a multibillion-dollar oil deal that would benefit Middle Eastern business executives with ties to the two main U.S. negotiators, Steve Witkoff and Jared Kushner.
The deal, which is contingent on approval from the U.S. government and the Kremlin, is for a sprawling set of oil fields, refineries and gas stations around the world owned by Lukoil, one of Russia’s biggest energy companies.
The leading group seeking the deal includes an American investor, Todd Boehly, who has donated $2 million to President Trump’s political causes; two Middle Eastern groups that have done business with Mr. Kushner or Mr. Witkoff’s family; and an arm of the U.S. government itself.
I hope there’s some way to prosecute all of them eventually.
