Then you should keep reading the statute because the statute explicitly contemplates the existence of states choosing not to create exchanges, i.e. they are choosing not to "elect" to create an exchange. The reason why the statute contemplates the possibility states may not make "elect" to not create exchanges is because the federal government cannot "commandeer" the states to participate in a federal regulatory scheme, a simple principle announced by the U.S. Supreme Court many years ago, a fact mentioned in one of the links I provided.
Failure To Establish Exchange or Implement Requirements.--
(1) In general.--If--
(A) a State is not an electing State under
subsection (b); or
(B) <<NOTE: Determination. Deadline.>> the Secretary
determines, on or before January 1, 2013, that an
electing State--
(i) will not have any required Exchange
operational by January 1, 2014; or
(ii) has not taken the actions the Secretary
determines necessary to implement--
(I) the other requirements set forth
in the standards under subsection (a);
or
(II) the requirements set forth in
subtitles A and C and the amendments
made by such subtitles;
the Secretary shall (directly or through agreement with a not-
for-profit entity) establish and operate such Exchange within
the State and the Secretary shall take such actions as are
necessary to implement such other requirements.
Incorrect. A law requiring the state to establish an exchange is nothing more than a law making such a requirement! Such declaration and mandate by a law does not tell us "who" established the exchange when and where the exchange exists. The law requiring X establish Y does not in fact tell us X established Y where Y exists. All you have focused upon is legal mandate but it does not tell us "who" has in fact established the exchange.
No, every state is in fact "not" establishing an exchange. There are many states which have refused to create an exchange. Requiring entities to do something, to engage in some act, is not the same as those entities
in fact engaging in the action. It is not some arcane knowledge states have chosen not to create exchanges. It has been widely publicized some states have refused to create exchanges. There is a reason why this lawsuit exists, and it is because some states have refused to create exchanges, which then complicates the proverbial "subsidies" as I call them, tax credits/benefits.
An exchange created by the Secretary of Health, as this section of the statute says "
Secretary shall (directly or through agreement with a not-for-profit entity) establish and operate such Exchange within the State", is not an exchange
established by the State but rather an exchange
established by the Secretary and operated by the Secretary.