Becky, this is absurd -- but somehow not surprising. I am so sorry. I have seen every flavor of rejection from insurance companies since my own in 2004, so nothing would surprise me. Keep fighting or get a lawyer, or both. They expect that you will give up. They are preying on your weakness.
I hope I can turn this into a positive -- I'll say a prayer for you tonight. Turn "preying" into "praying" so to speak. Who is the patron saint of insurance appeals?!