I'd have to guess that the system is similar to the one I have.
I suppose that there are fines and surveillance built in, but I've never heard of anyone running afoul. These horror-stories-in-advance sound more like the other sillyness we've heard from these folks. Death panels, deficits causing job loss, phantom firearm confiscations, armies of Mexicans taking over the Texas countryside, commie/nazi president, birth certificates, etc. etc.