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 The U.S. Court of Appeals for the District of Columbia Circuit
agreed to rehear the question of whether the subsidies should be
available in all 50 states or only in some. The court will hear new
oral arguments on Dec. 17.
The U.S. Justice Department had asked for the rehearing after a
three-judge panel on the court ruled against the Obama
administration on the legality of the subsidies, which have been
challenged by conservatives who object to the 2010 healthcare law.
A panel of up to 13 judges will reconsider the case, improving the
administration's odds of a more favorable outcome because Democratic
appointees make up a majority of the court, legal experts said.
A senior White House official welcomed the court's action, saying it
was "an important and welcome next step."
The court's announcement also delayed possible U.S. Supreme Court
consideration of the issue.
Obamacare, the most sweeping overhaul of the healthcare system in
decades and the signature domestic accomplishment of President
Barack Obama's first term, set up health insurance exchanges and
tax-credit subsidies to help people afford insurance premiums.
The law is still a target of criticism by Republicans.
Sam Kazman, general counsel of the Competitive Enterprise Institute,
which is funding the litigation against Obamacare, said that
ultimately the Supreme Court "is the only court that can resolve
this issue in the quick and final manner that the country deserves."
The plaintiffs say that, based on the language in the law, the
subsidies may only be paid in states that have their own online
health insurance exchanges. A total of 36 states do not have
exchanges of their own.
Five million people could be affected, analysts have estimated, if
the administration loses the legal fight and subsidies disappear
from the federal marketplaces that have been set up in states that
did not create their own exchanges.
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The decision to rehear the case was made by the court's 11 active
judges. Two senior judges who were part of the original three-judge
panel are also likely to participate in the rehearing. One is a
Republican appointee and one a Democratic appointee.
The three-judge panel that ruled in July was split 2-1, with two
Republican appointees in the majority.
In a similar case involving Obamacare subsidies, the 4th U.S.
Circuit Court of Appeals in Richmond, Virginia, ruled in favor of
the Obama administration in July. The plaintiffs in that case have
already sought immediate U.S. Supreme Court review of that ruling.
The case before the Washington court is Halbig v. Burwell, U.S.
Court of Appeals for the District of Columbia Circuit, No. 14-5018.
(Editing by Doina Chiacu, Kevin Drawbaugh, Bernadette Baum and Paul
Simao)
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