There's no question of
Chevron deference (which is the "d" word your frantic Google searching somehow failed to turn up) on this issue. Nobody--except for you and others equally unfamiliar with the ACA--thinks that the exchanges "only exist" to serve as conduits for tax credits. So were I to express doubt on that question--and I have none--it would not mean that I would have to recognize the IRS decision to treat "Exchange established by the State" as "Exchange established by the State or Secretary of HHS" as a valid interpretation of the statute. Those are distinct, unrelated questions. I refuse to concede your point about exchanges not because I lose otherwise, but because I know you're wrong.
The exchanges are "a
marketplace where individuals and small businesses will be able to shop for health insurance at competitive prices. Insurance companies will have an incentive to participate in this exchange because it lets them compete for millions of new customers. As one big group, these customers will have greater leverage to bargain with the insurance companies for better prices and quality coverage. This is how large companies and government employees get affordable insurance. It's how everyone in this Congress gets affordable insurance. And it's time to give every American the same opportunity that we give ourselves." This is important, because "
consumers do better when there is choice and competition. That's how the market works. Unfortunately, in 34 states, 75 percent of the insurance market is controlled by five or fewer companies. In Alabama, almost 90 percent is controlled by just one company. And without competition, the price of insurance goes up and quality goes down. And it makes it easier for insurance companies to treat their customers badly -- by cherry-picking the healthiest individuals and trying to drop the sickest, by overcharging small businesses who have no leverage, and by jacking up rates."
Put another way, exchanges--marketplaces "
that . . . operate something like a Travelocity Web site for insurance policies"--"fix a fundamental flaw in the present system by giving small businesses and individuals a broad choice of insurance policies at competitive prices. Right now, such buyers typically have few affordable options." But "[w]ithout careful design and adequate rules of fair play, and without letting enough buyers participate to create a robust market, the exchange might not actually stimulate new competition among the nations health insurers. . . . The risk is that many local markets could end up looking much as they do today with small businesses and individuals at the mercy of too few insurers wielding too much power in their regions."
Or, again, exchanges are "
an attempt to inject some retail competition into a marketplace that today is not exactly teeming with bargains. Theoretically, theyd allow individuals and small businesses to band together and get better prices and more variety in health insurance options the kinds of breaks that big corporations can negotiate for their employees today."
In addition to providing greater leverage to consumers in an attempt to control costs, "[t]he exchanges would offer individuals who do not have employer-sponsored health insurance and some small businesses a choice of health care plans, providing standardized information on areas such as benefits and cost,
making it easier to shop for coverage." Former Secretary of HHS Sebelius
agreed, when announcing the launch of Healthcare.gov: "HealthCare.gov will help take some of the mystery out of shopping for health insurance. For too long, it was confusing to identify your options and compare plans. HealthCare.gov makes comparison shopping easier with a new insurance finder that allows users to answer a few basic questions and receive information about insurance options that could work for them. The site makes a system that thrived on complication and confusion easier to understand. This kind of transparency helps create informed consumers which increases competition, reduces prices and improves quality."
Your reductionist theory that the exchanges are simply about providing credits to eligible taxpayers doesn't stand up to scrutiny against the statutory functions assigned to the exchanges or against contemporaneous expressions of the purpose of the exchanges. So, like I said: You've lost, Crisco. Give it up.