Not that anyone in FR would give a flying monkey...but the VEBA (UAW retiree health care) does this, too, in spades. It’s what Obama care will do.
Some of the little gifts hidden in that “book” no one bothered to read.
The point is that nothing is free. Sure, something might be covered at 100%, but that doesn't mean it's free. It just means that premiums rise (or taxes go up in the case of government provided healthcare).
If the government mandated that some procedure was to be truly "free" (as in the provider may not bill an insurance company or the government), that procedure would no longer be offered by virtually any provider.