Should turbo tax continue to expect me to fix a 1099HC when filing a return in MA even after I corrected the return to reflect I was never a resident? Seems like a bug.

The quickest and easiest way to fix this, if you have not yet registered or paid for your state return, is to delete it and add it back in to the program.  To do this, click on State in the menu on the left.  Then click delete beside Massachusetts.  Next, click "add a state" and add Massachusetts back in and select non-resident when going through the program.

If this is not possible try these steps instead:

1. Click on Tools in the menu on the left. 
2. Click on Tax Tools.
3. Click on Delete a Form in the menu that pops up.
4. Scroll down to the Massachusetts forms and click Delete beside 1099HC.  Confirm that you wish to delete the form.