Honestly, I have to wonder if the cruelty is the point here. Even in the cold light of pure financial terms, it's bad for insurers to behave this like:

Unable to pay the $350-a-day out-of-pocket cost for additional intensive outpatient treatment, Moore left her program within a week of BCBS Texas’ denial. The insurer would only cover outpatient talk therapy.

During her final day at the program, records show, Moore’s suicidal thoughts and intent to carry them out had escalated from a 7 to a 10 on a 1-to-10 scale. She was barely eating or sleeping.

A few hours after the session, Moore drove herself to a hospital and was admitted to the emergency room, accelerating a downward spiral that would eventually cost the insurer tens of thousands of dollars, more than the cost of the treatment she initially requested.

999 of a 1000 times when they make a decision like this, the patient is fine. This kind of situation is pretty rare. That’s why they do it.