This has been talked about on FR, but not as much as it should be.
The tax is very difficult to collect as there is really no penalty for not doing so, and no means to force payment other than grabbing any refund that may be owed.
It was designed to be difficult to enforce. Once people figure out the ins and outs, the insurance companies will either hike premiums to the stratosphere or go BK or both which is probably the underlying objective.