{"id":3823,"date":"2025-07-08T15:53:31","date_gmt":"2025-07-08T15:53:31","guid":{"rendered":"https:\/\/aomtodayprod.wpenginepowered.com\/?p=3823"},"modified":"2025-07-08T15:53:31","modified_gmt":"2025-07-08T15:53:31","slug":"the-fury-against-u-s-health-insurers","status":"publish","type":"post","link":"https:\/\/www.aom.org\/today\/the-fury-against-u-s-health-insurers\/","title":{"rendered":"The Fury Against U.S. Health Insurers"},"content":{"rendered":"<p>By <a href=\"https:\/\/www.aom.org\/today\/author\/daniel-butcher\/\" target=\"_blank\" rel=\"noopener\">Daniel Butcher<\/a><\/p>\n<p>The fatal shooting of UnitedHealthcare CEO Brian Thompson last year opened the floodgates of criticism of the United States healthcare industry. It still hasn\u2019t subsided.<\/p>\n<p>Academy of Management Scholar <a href=\"https:\/\/www.aom.org\/today\/jeffrey-pfeffer\/\" target=\"_blank\" rel=\"noopener\">Jeffrey Pfeffer of Stanford University<\/a> said that he was not surprised by the intense and broad-based denunciation of U.S. health insurers and health benefits administrators in the wake of Thompson\u2019s killing.<\/p>\n<p>\u201cEvery day, third-party administrators and health insurance companies require preauthorization of healthcare services, and the amount of preauthorization required has gone up,\u201d Pfeffer said.<\/p>\n<p>\u201cThe American Medical Association, which sees prior authorization as a burden on doctors and as and as something that has increased the cost [of healthcare], because for every time you require prior authorization, there has to be someone at the doctor\u2019s office who\u2019s filling out these forms, and there has to be somebody at the health insurance office dealing with these forms,\u201d he said.<\/p>\n<p>Even when patients went to in-network physicians\u2014doctors and hospitals approved by insurers offering Affordable Care Act (ACA) plans\u2014the companies denied an average of 17% of claims in 2021, according to a 2023 study. Many insurers\u2019 denial rates were well above that, though, with one approaching 50% in 2021 and another hitting 80% in 2020.<\/p>\n<p>\u201cThere\u2019s data published in a peer-reviewed journal that says that close to one out of five, the actual number is 17%, almost 20% of authorized and approved claims are never paid by insurers, which is one of the reasons that <em>The Wall Street Journal<\/em> and <em>The New York Times<\/em> have reported that cash prices are typically cheaper than the negotiated network prices done by these third-party administrators,\u201d Pfeffer said. \u201cYou have insurance companies that aren\u2019t paying [legitimate] claims and adding paperwork\u2014some colleagues and I published a paper in the <em>Academy of Management Discoveries<\/em> on this topic of what this costs patients.<\/p>\n<p>\u201cYou have this enormous administrative burden, and you have arbitrary denials of claims and prior authorization and high costs and other burdens, and this affects people who are sick,\u201d he said. \u201cYou have people at the most delicate times of their and their families\u2019 lives who are basically being mistreated by these large insurance companies.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Daniel Butcher The fatal shooting of UnitedHealthcare CEO Brian Thompson last year opened the floodgates of criticism of the United States healthcare industry. It still hasn\u2019t subsided. Academy of Management Scholar Jeffrey Pfeffer of Stanford University said that he was not surprised by the intense and broad-based denunciation of U.S. health insurers and health [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":4127,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26,29,78,46],"tags":[],"sp_smart_badges":[],"ppma_author":[70],"class_list":["post-3823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-social-responsibility","category-emotions","category-policy","category-well-being"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Fury Against U.S. Health Insurers - Academy of Management Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aom.org\/today\/the-fury-against-u-s-health-insurers\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Daniel Butcher\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/the-fury-against-u-s-health-insurers\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/the-fury-against-u-s-health-insurers\\\/\"},\"author\":{\"name\":\"Daniel Butcher\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/#\\\/schema\\\/person\\\/d1297a59039d9ca7bac9d9f0952e508c\"},\"headline\":\"The Fury Against U.S. Health Insurers\",\"datePublished\":\"2025-07-08T15:53:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/the-fury-against-u-s-health-insurers\\\/\"},\"wordCount\":369,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/the-fury-against-u-s-health-insurers\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aom.org\\\/today\\\/wp-content\\\/uploads\\\/2025\\\/04\\\/Curse-Swear-Bleep-Taboo-Failure-Fail_shutterstock_2232159799-scaled.jpg\",\"articleSection\":[\"CORPORATE SOCIAL RESPONSIBILITY\",\"EMOTIONS\",\"POLICY\",\"WELL-BEING\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.aom.org\\\/today\\\/the-fury-against-u-s-health-insurers\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/the-fury-against-u-s-health-insurers\\\/\",\"url\":\"https:\\\/\\\/www.aom.org\\\/today\\\/the-fury-against-u-s-health-insurers\\\/\",\"name\":\"The Fury Against U.S. Health Insurers - 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Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer\\\/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, as well as Crain Communications\u2019s InvestmentNews and Crain\u2019s Wealth, eFinancialCareers, and Arizent\u2019s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor\u2019s degree, Cum Laude, from the University of Colorado Boulder and his master\u2019s degree from New York University. 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Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer\/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, as well as Crain Communications\u2019s InvestmentNews and Crain\u2019s Wealth, eFinancialCareers, and Arizent\u2019s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor\u2019s degree, Cum Laude, from the University of Colorado Boulder and his master\u2019s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.","sameAs":["https:\/\/aomtodayprod.wpenginepowered.com","https:\/\/www.linkedin.com\/in\/danielbutcher\/"],"url":"https:\/\/www.aom.org\/today\/author\/daniel-butcher\/"}]}},"authors":[{"term_id":70,"user_id":4,"is_guest":0,"slug":"daniel-butcher","display_name":"Daniel Butcher","avatar_url":{"url":"https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/01\/DanButcher_Academy-of-Management.webp","url2x":"https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/01\/DanButcher_Academy-of-Management.webp"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"rttpg_featured_image_url":{"full":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/Curse-Swear-Bleep-Taboo-Failure-Fail_shutterstock_2232159799-scaled.jpg",2560,1707,false],"landscape":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/Curse-Swear-Bleep-Taboo-Failure-Fail_shutterstock_2232159799-scaled.jpg",2560,1707,false],"portraits":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/Curse-Swear-Bleep-Taboo-Failure-Fail_shutterstock_2232159799-scaled.jpg",2560,1707,false],"thumbnail":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/Curse-Swear-Bleep-Taboo-Failure-Fail_shutterstock_2232159799-150x150.jpg",150,150,true],"medium":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/Curse-Swear-Bleep-Taboo-Failure-Fail_shutterstock_2232159799-300x200.jpg",300,200,true],"large":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/Curse-Swear-Bleep-Taboo-Failure-Fail_shutterstock_2232159799-1024x683.jpg",800,534,true],"1536x1536":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/Curse-Swear-Bleep-Taboo-Failure-Fail_shutterstock_2232159799-1536x1024.jpg",1536,1024,true],"2048x2048":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/Curse-Swear-Bleep-Taboo-Failure-Fail_shutterstock_2232159799-2048x1365.jpg",2048,1365,true],"owl_elementor_thumbnail":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/Curse-Swear-Bleep-Taboo-Failure-Fail_shutterstock_2232159799-600x400.jpg",600,400,true],"owl_elementor_team":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/Curse-Swear-Bleep-Taboo-Failure-Fail_shutterstock_2232159799-350x450.jpg",350,450,true],"owl_elementor_testimonial":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/Curse-Swear-Bleep-Taboo-Failure-Fail_shutterstock_2232159799-100x100.jpg",100,100,true]},"rttpg_author":{"display_name":"Daniel Butcher","author_link":"https:\/\/www.aom.org\/today\/author\/daniel-butcher\/"},"rttpg_comment":2,"rttpg_category":"<a href=\"https:\/\/www.aom.org\/today\/category\/corporate-social-responsibility\/\" rel=\"category tag\">CORPORATE SOCIAL RESPONSIBILITY<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/emotions\/\" rel=\"category tag\">EMOTIONS<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/policy\/\" rel=\"category tag\">POLICY<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/well-being\/\" rel=\"category tag\">WELL-BEING<\/a>","rttpg_excerpt":"By Daniel Butcher The fatal shooting of UnitedHealthcare CEO Brian Thompson last year opened the floodgates of criticism of the United States healthcare industry. It still hasn\u2019t subsided. Academy of Management Scholar Jeffrey Pfeffer of Stanford University said that he was not surprised by the intense and broad-based denunciation of U.S. health insurers and health&hellip;","_links":{"self":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/3823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/comments?post=3823"}],"version-history":[{"count":0,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/3823\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media\/4127"}],"wp:attachment":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media?parent=3823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/categories?post=3823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/tags?post=3823"},{"taxonomy":"sp_smart_badges","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/sp_smart_badges?post=3823"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/ppma_author?post=3823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}