Codes need to be complicated. Insurance is taking advantage of that (and adding more complexity), but the complexity is in the system in ways that cannot be removed. The common cholesterol test is a lot cheaper to run than a vitamin D test (20 years ago I found online the price list from a lab, IIRC costs ranged from $0.80 to $15,000 - I can't find anything current and my memory might be off a bit, but close enough for discussion), so there needs to be a different code for each test just to ensure the right bill is made. Insurance just uses those codes to decide which they will pay for.
I do not want my insurance to pay for homeopathy or other scams. That just raises my rates and ensures a worse outcome for everyone. So the system of different codes for everything is overall good. There are a lot of debate on how much money we should spend on someone who will die "soon", some would call giving them a quick poison the most humane thing to do - there is plenty of room to disagree on what should or should not be allowed and insurance is just taking a position that not everyone agrees with.
The real problem in my opinion is nobody has a choice about what insurance they have, and so we are all yelling we want something "better" without needing to care about the trade offs.