If an insured denies a rightful claim, they should have to pay for it three fold. They should have to pay for the actual treatment. Then an equal amount should be paid to any lawyer or patient advocate. And the company should have to cut a check for an equal amount for the patient.
The problem is right now there's no downside to wrongfully denying a claim. Worst that happens is that insurance later ends up paying what they would pay anyway. There needs to be a strong financial disincentive to wrongfully denying claims.