That sure is crappy, Minniea! What on earth do they know about how "necessary" something is!? I saw an interview on Oprah with some insurance people and good ol' Michael Moore and the total insensitivity of it all struck me when I heard this insurance lady say that they just had to deny some claims because otherwise they would not be able to stay in business. I don't think it has anything to do with how necessary something is, they just have to keep making the big bucks. There are two things that come to mind in rectifying this:
1) Broken record method: keep asking for what you want over and over again until you get it.
2) Squeaky wheel method: Yell like H E double hockey sticks! Seems like the one who makes the loudest noise gets the prize. And it doesn't hurt to tell as many important people as you can (like newspapers and TV). Get your family to yell loud and clear to anyone and everyone. Make paper copies and mail them to everyone concerned. After all, since they told you it was "not necessary" it's not like you could return the PEG to WalMart and get your money back! And the fact they gave you a referral seems to imply pre-approval. Each state also has Insurance Regulators and according to the Consumer Resource Handbook, the one for Virginia is Mr. Steven T. Foster in Richmond, VA (804-786-3741. PM me if you want a more complete address. Let us know what happens.