It says they pay extra to compensate. This gives the employee to choose their own health care provider. I would think that is better than having it chosen for you buy your employer.
Example: I was recently informed that I'm now one mile outside of their coverage area. Getting them to initiate transfer of coverage to a new insurer is harder than pulling teeth. And they offered to do it. But I've had to spend several hours on the phone with them this week simply trying to find out if they did, in fact, contact the new insurer.
Edit: Of course, they hadn't, but by a cosmic coincidence the paperwork went out yesterday, the third day in a row of escalating frustrations. I think they just got sick (pun intended) of talking to me.