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And this is how you get a completely sociopathic system held up by seemingly "moral" or "good" people.
In a general sense it's hard to argue against unnecessary care. After all it's right in the name. It's unnecessary. And it's hard to argue against managing personnel based on performance. Trying to audit every decision could be time consuming and expensive. Just put in a KPI (Key Performance Indicator) with respect to cost to company. If you approve $X amount of claims and your coworker approved $Y, when they need to downsize or trim the fat, you just look at X and Y and let go the one that approved more claims.
Each step can be kinda argued and supported in a vacuum. And that's where these CEOs wilfully sit. They don't explicit tell employees to deny more claims. They just make it more lucrative at every step to do so.