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This seems like a horrible violation of property rights

I couldn't agree with you more. On a related note, there is apparently a religious conscience exemption:

http://www.pajamahadin.com/?p=1376

Reminds me of the Amish exemption from Social Security:

http://www.amishnews.com/amisharticles/amishss.htm

And so it came to pass that in 1965, the Medicare bill was passed by Congress. As Wayne Fisher writes in The Amish in Court, "Tucked into the 138 page bill was a clause exempting the Old Order Amish, and any other religious sect who conscientiously objected to insurance, from paying Social Security payments, providing that sect had been in existence since December 31, 1950. After Senate approval in July, the signing of the bill by President Lyndon B. Johnson on August 13, 1965, made it official and canceled tax accounts of some 15,000 Amish people amounting to nearly $250,000."




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