The Rising Denials of Health Insurance Claims and the Need for a Purpose-Driven Approach

Ben H.

Hatched by Ben H.

Aug 06, 2023

4 min read


The Rising Denials of Health Insurance Claims and the Need for a Purpose-Driven Approach


In recent years, the number of denials for health insurance claims has been on the rise in the United States. This trend not only poses a threat to individuals' health and financial well-being but also raises questions about the integrity of the healthcare system. On the other hand, companies are increasingly emphasizing the importance of purpose-driven initiatives, aiming to create a more sustainable and inclusive future. In this article, we will explore the connection between rising insurance claim denials and the need for a purpose-driven approach.

The Alarming Trend of Denied Health Insurance Claims:

Millions of Americans have experienced the frustration of having their health insurance claims denied. What was once a process that ensured immediate payments has now become a battle for coverage. Some insurance companies have even designated specific job titles, such as "denial nurse," reflecting the increasing frequency of claim denials. A recent study by KFF found that, even when patients received care from in-network physicians, insurers denied an average of 17% of claims in 2021. Shockingly, one insurer denied 49% of claims, while another reached an astonishing 80% denial rate in 2020. These statistics highlight a concerning trend that demands attention.

The Impact on Patients' Health and Finances:

The denial of health insurance claims can have dire consequences for individuals. Denied claims not only disrupt necessary medical treatment but also place a significant financial burden on patients. Medical expenses can quickly accumulate, leading to debt and financial instability. Moreover, the stress and uncertainty caused by denied claims can negatively affect patients' mental and emotional well-being. It is crucial to address this issue to ensure that individuals have access to the healthcare they need without unnecessary hurdles.

The Role of Purpose-Driven Initiatives:

As insurance claim denials continue to rise, it is essential to consider the broader context of purpose-driven initiatives. Many companies today emphasize the importance of creating a sustainable and inclusive future. These initiatives aim to make a positive impact on society and align business practices with social and environmental goals. However, it is crucial to examine how these purpose-driven initiatives balance with less purpose-driven aspects of business. While companies may tout their commitment to positive change, the rising denials of health insurance claims raise questions about the consistency of these efforts.

Finding Common Ground:

Despite the seemingly disparate topics of rising insurance claim denials and purpose-driven initiatives, there are common threads that connect them. Both issues revolve around the idea of fairness and integrity. Denying health insurance claims that should be covered undermines the fairness of the healthcare system and erodes trust in insurance providers. Similarly, purpose-driven initiatives seek to create a more equitable and sustainable world. By addressing the root causes of denied claims and aligning business practices with social goals, companies can contribute to a more just and inclusive society.

Actionable Advice:

  • 1. Advocate for Transparency: Individuals should demand transparency from insurance companies regarding claim denials. By understanding the reasons behind denials and challenging unjust decisions, individuals can navigate the system more effectively and hold insurers accountable for their actions.
  • 2. Support Purpose-Driven Companies: Consumers have the power to support companies that prioritize purpose-driven initiatives. By choosing to engage with businesses that demonstrate a genuine commitment to positive change, individuals can encourage more companies to adopt similar practices and contribute to a more sustainable and inclusive future.
  • 3. Push for Policy Reforms: As individuals, we can also advocate for policy reforms that address the issue of denied health insurance claims. By engaging with policymakers, supporting organizations that fight for healthcare access, and participating in grassroots efforts, we can collectively push for changes that benefit everyone.


The rising denials of health insurance claims highlight the need for a purpose-driven approach in the healthcare industry. As individuals, we must be proactive in advocating for transparency, supporting purpose-driven companies, and pushing for policy reforms. By addressing the root causes of denied claims and aligning business practices with social goals, we can work towards a healthcare system that is fair, inclusive, and prioritizes the well-being of individuals.

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