US court puts Obamacare case on hold until Trump takes office

WASHINGTON, Dec 5 (Reuters) - A federal appeals court on Monday agreed to put on hold until after U.S. President-elect Donald Trump takes office in January the Obama administration's appeal of a judge's ruling favoring a Republican challenge to a key part of the Obamacare law.

The action by the U.S. Court of Appeals for the District of Columbia Circuit was a victory for the Republican-led U.S. House of Representatives, which filed the challenge to the 2010 law and asked the court for the delay. Trump favors repealing and replacing the Affordable Care Act, President Barack Obama's signature domestic policy achievement.

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The court said both sides should provide an update on the status of the case by Feb. 21. Trump is due to be sworn in as Obama's replacement on Jan. 20.

The House Republican challenge targets government reimbursements to insurance companies to compensate them for reductions that the law requires them to make to customers' out-of-pocket medical payments.

(Reporting by Lawrence Hurley; Editing by Will Dunham)