Not correct. That is indeed a secondary benefit. But the reason for doing this is that Breshear, IN VIOLATION OF THE KY CONSTITUTION, issued an EO to create the exchange, and this illegality should be corrected. This is clearly a legislative function, not an executive one in Kentucky. Breshear knew this, he knew that the republicans did not have the votes to stop his illegal EO. He also knew (correctly it turns out) that the activist courts would side with him when the Republicans sued him.
Exactly - there was - and is - no statute supporting the existence or funding of kynect.