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I am very sorry to hear about this whole situation. It is possible to appeal the decision, but this would have to be done on a court level. I am guessing your appeals so far have been via an administrative procedure. If so, then once that administrative procedure runs out, there is no more right to appeal per se "internally" but one can take the matter to a civil court and let the court decide.
Assuming this fails or assuming one feels that success is unlikely, there is insurance for individuals with preexisting conditions - under he new insurance laws, companies generally cannot deny her coverage based on her condition alone. However, she may have to get insurance elsewhere other than work. See HERE.
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