Federal Court Throws Out Obamacare Subsidies Ruling

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In a victory for the Obama administration, a federal appeals court in Washington, D.C. Thursday threw out an earlier ruling that said financial subsidies are not available for people who bought health insurance on the federal exchange. A three-judge panel of the D.C. Court of Appeals reached that conclusion in late July. On the same day, a federal appeals court in Richmond reached the opposite conclusion and said the subsidies are available.

But Thursday, the full D.C. Court of Appeals said it will re-hear the case, which erases the lower court ruling that went against the subsidies. This greatly diminishes the prospect that the U.S. Supreme Court will take up the issue in its coming term. The Justice Department had urged the full court to hear the case. The makeup of the court is thought to be more sympathetic to the argument that the subsidies are available.