Is it also true that the citizens of those States that chose not to set up exchanges and/or expand Medicaid can’t be charged the penalty (tax)?
By the letter of the law, yes.
The IRS has nonetheless written regulations allowing them to do so.
I believe this is also being challenged in court.
At any rate, the IRS has no way to enforce the fine. If you don't pay it, they have no way to collect it -- other than deducting it from any refund you might be due.
Obamacare was 2700 pages of bad law, poorly written. As Nancy Pelosi said...