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[IP] Diabetes Supplies

Had an interesting discussion with my insurance company yesterday.  They don't want to pay for Kim's supplies because I'm not getting them from IHC.  I've been ordering them from Intermountain Diabetes Supply Co.  (IDS is a listed provider)  When I asked them why IDS was in their provider book if I couldn't use them  (Seemed like a logical question to me!)  I was told that they had an agreement with IHC that all of the durable diabetes supplies would be purchased through them.  The only reason the IDS was listed in their book was because they HAD to list anyone who qualified as a provider for them..but I still couldn't use them.  After I told them that I thought that practice might be illegal and was assured by the associate I spoke with that she was sure it wasn't or they wouldn't be doing it..I spoke with the state insurance dept.  They would like to look into it for me.....  Has anyone else had this problem ? (I was extremely pleasant with the assoc.  Told her that I knew it wasn't her policy and I was in no way unhappy with her but I needed to speak with her supervisor...the supervisor gulped and told me she would look into it.)