The U.S. Ninth Circuit Court of Appeals on Thursday dealt an expensive blow to the Portland insurance company Moda Health.

In a decision first reported by the Portland Business Journal, a three-judge panel struck down a $214 million award granted last year in U.S. District Court that compensated Moda for new but unprofitable business it took on following the passage of the Affordable Care Act.

Moda lost heavily on that new business and subsequently sued the feds to recoup its losses. The appeals court ruled Moda did not deserve compensation.

"We are disappointed," Robert Gootee, president and CEO of Moda Inc., told the Business Journal in a statement. "If it is upheld on appeal, it will effectively allow the federal government to walk away from its obligation to provide partial reimbursement for the financial losses Moda incurred when we stepped up to provide coverage to more than 100,000 Oregonians under the ACA."