Hello Radish,
I am sorry to hear about your wife and everything you are going through. I think it's terrible that Blue Cross has denied bills, but I'm not surprised. I have worked in the medical field for years dealing with these kinds of issues. There should be an explanation of benefits with the denial reason and that will determine your next step. Sometimes it's as simple as a wrong code being entered by the hospital, which they can correct and rebill. Depending on the denial you can appeal and get letters of necessity from the doctors. If the denial is related to maximum benefits reached than you can apply for Medicaid and/or charity assistance through the hospital, it sounds like you would qualify.
I agree with Sarah that it may be your wife's way of coping. I'm sure she's scared about her illness and worried about the bills. I shielded Jay from the finances because he was worrying about medical bills being covered, other bills, etc. I told him I was applying for assistance and not to worry. I would suggest telling her what I mentioned above and not to worry about the bills, they must treat her and the assistance can go retro active. Please follow up on this as soon as you can. I think that may help.
I wish you the best, please let me know if I can help any further.
Take care,
Lori