"He paid some on the Medicare insurance, but there is no place for it on the return."

Yes, there is; if there was a split year, you enter the data month-by-month. But it seems that happened in 2020 for this person.

"There is nothing else except for self-employed people."

Now you are referring to deduction or credit, that you think he should be getting?

"So even if you paid it yourself and its not on the Market Place, you get nothing, no credits, which makes it sound like he's getting penalized."

As we've seen stated on this forum more than once, not everything about Life is a tax deduction.