President Donald Trump announced $500 rebates for about 1 million Americans he said were overcharged through the Affordable Care Act Marketplace, commonly known as Obamacare.
The rebates stem from a little-known fee collected from consumers to operate the online insurance market.
Here’s what to know about the rebates, the surplus, and the little-known fee that created it.
How User Fees Work
The rebates come from a surplus in user fees, which the government imposes on consumers to fund the operation of the federal insurance marketplace. The fee covers operation of the system, including information technology, the consumer call center, and eligibility and enrollment services….