Social Security and Insurance Denials Highlight Systemic Risks to U.S. Benefit Access

The Social Security Administration recently reclassified over 6,000 immigrants as deceased, effectively denying them access to their legally entitled Social Security numbers and benefits. While this action appears targeted at immigrants, the incident underscores a broader vulnerability experienced by many Americans when administrative decisions affect access to essential services and benefits.

Similar issues have surfaced in the insurance sector, exemplified by increased mail theft and check fraud leading to life insurance policy cancellations, even when payments were made on time. Concurrently, health insurers have increasingly employed claim denial strategies to manage costs, with denials rising 16% between 2018 and 2024, impacting access to critical medications like insulin and albuterol amid growing profitability for insurers.

Medical debt remains the leading cause of personal bankruptcy in the U.S., affecting millions. Disability benefits also present access challenges; only 38% of applicants meeting technical criteria are initially approved, though over half of those who appeal gain approval after lengthy and burdensome processes. Surveillance advancements, including digital monitoring technologies subject to inherent biases, further complicate claims adjudication for both immigrants and native-born Americans, raising privacy and compliance concerns.

These interconnected policies and administrative practices contribute to systemic risks affecting all beneficiaries of social and insurance programs, highlighting the importance of regulatory and industry focus on equitable access and protection against arbitrary benefit denials.