Hi Sharon. I actually think it was pretty decent of your T to ask you if you felt rejected. That tells me that he was genuinely concerned. This wasn't his fault, and it sounds like he's worried about you, and did whatever he could to help.
That said, I understand that feeling of rejection. My insurance company has done this to me more than once . . . cut me off and told me that I had used up my required sessions. On one occasion, the therapist I was seeing at the time was completely businesslike about it, and said quite matter-of-factly that I was out of sessions, and, oh well. I really felt that all she cared about was getting the money from my insurance. She wasn't going to care about me if not being paid for it. I felt totally rejected. It was HORRIBLE.
I went through this last year with my current therapist, and she at least offered me the ability to pay cash for the sessions, which a lot of doctors won't do. Her rate wasn't all that high, so I paid cash for a few sessions while ironing it out with my insurance.
When this happens, I also feel very rejected, and very abandoned, and very angry at the insurance company. IMO it's pretty irresponsible to cut someone off from mental health care.
I'm not trying to hijack your thread and make this about me, just want to let you know that I've experienced this myself. I'm sure many of us have. When we've felt rejection all of our lives, there's no way that we can just walk away from something like this and not feel rejected, even if we know the doctor went to the mat for us. Maybe you should take the referral that he offered, and try this new therapist. Since doctors tend to refer people they know, it might help you to talk to the new therapist about what happened. Try not to sit and dwell on it. Talking to another T as soon as possible might really help you.
Hang in there.
Kathy