Black Mamba
Member
Kennedy's questions ultimately boiled down to the following two: (1) How should I interpret the text? (2) If the challengers are right about the text, is the scheme they describe unconstitutionally coercive?
The Chevron analysis fits into question (1). Remember that Chevron tasks courts with asking two further questions, which I'll paraphrase: (a) Is the statute ambiguous on the relevant point? (b) If so, is the agency rule based on a reasonable interpretation of the statute? If, as an initial matter, Kennedy thinks the statute is ambiguous, but one of the reasonable readings would raise constitutional doubts, then he might say that the statute is actually unambiguous in favor of the other reasonable reading. Kennedy's questions about whether the challengers' reading would be coercive fit in here, as well as in question (2). But if he concludes in (a) that the statute really is ambiguous, and that he can't avoid that ambiguity, then he'll move on to (b). (Some of Kennedy's comments about the text indicate that he doesn't view the government's reading as a reasonable one, so the doctrine of constitutional avoidance may not even come into play for him.)
Question (b) is where Kennedy's questions concerning the magnitude of the discretion purportedly left to the IRS come in. As a consequence, even if he gets to Chevron step two (i.e., question (b)), he might say that the IRS rule is not entitled to deference because Congress would not have delegated so great a power through an ambiguous term. (By the way, Verrilli refers on page 76 to a "learned treatise that described" the rule that tax credits must be clearly stated "as a false notion." He's referring to Scalia and Garner's Reading Law, with which you are all surely familiar by now.)
Question (2) probably won't play into the case if it doesn't do so in Kennedy's thinking about question (a). This is because question (2) is not part of the questions presented in the case, and the issue has not been fully briefed. In fact, neither the government nor the challengers are willing to endorse the theory in this case. So, unless question (2) causes Kennedy to interpret (a) in favor of the government, I think he'd kick the can down the road, waiting for a state to challenge the program on the basis that it's coercive.
I don't think that's what Kennedy's saying. I think he's saying the challengers' reading raises a "serious Constitutional question," and both parties need to address that. Verrilli does address it by saying, in essence, "If that causes you to interpret the statute my way rather than the challengers' way, then more power to you. But I'd never concede you're right about it."
An Exchange isn't the website, but the organization tasked with maintaining the website (among other duties). An Exchange can contract with an "eligible entity" to "carry out 1 or more responsibilities of the Exchange" under 1311(f)(3), but "eligible entity" is defined in such a way as to exclude HHS.
Speaking of California, California Government Code sec. 100500 demonstrates how a state "establishes" an Exchange:
I was unaware that HSS is not an eligible entity according to the ACA.
Regarding Kennedy, I wonder if the SCOTUS will find a way to kick the case back down to the Circuit Court after giving guidelines. IE: Determining Chevron applies but since it's not properly briefed on the merits of the Chevron test, send it back to the lower court to decide.
I also now don't see any way for the Court to side with Petitioners without addressing the coercive argument. Rule one way and Virginia will instantly file suit.
Ruling in favor of King would be a bloody mess all around. You'd have other constitutional issues arise. You'd have insurance marketplaces wiped out with no fix in place. It would be economic and legal chaos. You can't stay the judgment 6 months to help.
And yes, theoretically the Court shouldn't rule one way because it makes more sense to do so even if it is legally wrong. But theory and reality don't always meet up. A Justice has to be cognizant of the affect on people's lives such a ruling would cause. Hypothetically, let's say a case comes to the Court in which a ruling one way would literally cause an overnight recession. Maybe on the merits, that ruling is correct, but should they do it? You can't take the reality out of the equation...
Granted, King should lose on the merits, but I think it's an interesting dilemma for people like Roberts and Kennedy who might otherwise be swayed to go a different direction. I mean, you're literally killing people by removing their cancer treatment by ruling in favor of King (Scalia and Thomas don't give a fuck, they'd actively steal the chemo away).
Only a few months to go...yayyyyy!!!