A federal judge today rejected a key lawsuit against ObamaCare, ruling that the reform's insurance subsidies are lawful in states that did not create their own marketplaces, among them Iowa, The Hill reported. If successful, plaintiffs in Halbig vs. Sebelius would have blocked premium tax credits in 36 states where the federal government is running a marketplace under Patient Protection and Affordable Care Act provisions. The discounts are intended to help lower-income people who do not qualify for Medicaid afford private health plans. Dismissing the lawsuit Wednesday, U.S. District Court Judge Paul Friedman wrote that the subsidies should be available in all 50 states, regardless of whether they created their own online exchanges.