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The role of an employer - meaning business - is to maximize earnings. Each employee costs a certain amount for X amount of production. If some employees are doing X amount of production but due to other factors cost the employer much more, the employer has a right - a responsibility in the case of publicly held companies - to mitigate those costs.
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I agree with you on the above but let's not forget that an employee chooses one employer over the other as to what best benefits them as well, so you have two parties to satisfy.
If an employee does not like the stipulations an employer imposes upon them, they can vote with their feet and go through all the trouble of finding another job. The employer then has to rehire and go thru the training process all over again until they find a suitable applicant. Lose / Lose situation.
Perhaps it would benefit both parties for the employer to pay the employee a suitable wage increase and let them negotiate an individual policy with the insurance companies themselves?. That way the employer doesn't look like the bad guy for enforcing a police state and therefore productivity isn't lost. The employee gets a better understanding how it is from the employer's perspective who is trying to provide benefits for them in a world of ever increasing costs. (sometimes 30% a year)