Photos app - import into specific folder

When I import a folder of photos into the Photos app there is an option at the top of the import window that says "Import to:" and there is an option Library where there is a dropdown of your existing folder hierarchy, but try as I might I can't get it to import into a specific folder. It always imports into My Albums root and I have to drag it to the correct location. I'm wondering what that function is supposed to do as it doesn't seem to do what I expect (or anything for that matter).