If just the part about the Government telling these funds where they must invest their money is incoherent, then I do not see where we have anything to discuss.
You know people and entities purchase health insurance all the time, but now the Government tells them they must and pretty much which policies they must buy, but then that is most likely incoherent to you as well.
It was publicly legislated by Congress.
If we just woke up one morning to find that we were compelled to buy insurance, the article - while still completely unsourced and speculative - might have been more convincing.