Gwin,
as you noted that the insurance is CA, I would talk to the folks at the departmant of managed care California Department of Managed Health Care Health Plan Complaints and Appeals . They were amazing for Me and my Wife when we were trying for a birth center rather than a hospital birth. They are expert at deciphering the policy restrictions and verifying that things are being looked at properly. They can likely help with the use of outdated reference materials.
Fight like hell for what you need and good luck!
__________________
Congenital fusion C5-6
"Notable" herniation C6-7 with bone spurs - Fused 3/3/2011
Degeneration at C7-T1, non symptomatic yet... 
Mild herniations C3-4 and C4-5
Numbness R-Hand - Gone withing 48 hrs of surgury
"Hot-Wire" pain R-Shoulder through elbow and hand - still controlled with Nurontin, expected gone in a few weeks.
intermittent tingling and electrical jolts R-Arm - Gone after surgery
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