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Since when were insurance companies able to deny healthcare to people?
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Since always. They have certain standards and of you don't meet them you don't get coverage. Same for auto insurance. You might not have had a crash you want them to pay for but if you have 4 speeding tickets good luck finding any "normal" affordable insurance. Your employer might have a contract that will cover you but not necessarily.
About the rules issue.
The constitution is clear. But this is the same woman who said "you have got to be kidding" when the constitutionality of the bill was questioned. They are not going to let a little thing like the constitution or the will of the people get in the way.
This is not a coup by the legislator either. This is a coup by certain people in the legislature and executive.