Trauma isn't the right word here. Again. The misuse of language in health care is shockingly disastrous. It's as if language itself is stripped of its intended usage.
In some cases there may be something that can be described as traumatic, but the real issue is a far larger mass of needless hardship, of amplified suffering, of taking a bad situation and making it worse in every way possible.
Those systems are built this way on purpose. There are far more people who need help than is available, so those systems place unnecessary burdens, impose hardship on purpose, as an alternative to an efficient resource allocation process. It combines the arbitrariness of an informal system, like charity, but formalizes it in a system of secret rules that is improperly enforced and with more hidden exceptions than there are claimants.
The simple truth is that people in general don't think those protections are necessary. It's common to see and hear opinions that disabled people don't deserve the right to anything, not even to live. It's been on full display since COVID arrived. They mostly seem to assume some sort of separation where those who "truly deserve it" are helped, but I don't think anyone sincerely buys this.
We haven't evolved much beyond our distant ancestors who would abandon the sick and injured when they couldn't carry them, when competition for resources comes into play. Human value is determined almost entirely by the work we can do. We just have more stuff and resources such that some of it takes care of itself, but the motivation simply isn't there. Hell, most health care professionals play along with it, why would the general public be any better at it?