Pulling daughter out of preschool??? What do you say???

Today I got a letter in the mail saying my 2 kids no longer qualify for CHIPS (no not the same as medicaid but still through the state and yes I DO have to pay for it just at a VERY reduced rate compared to normal insurance) It said we dont qualify anymore because my husband made $ 112 to much FOR THE ENTIRE YEAR (not each month) Believe me I know that the state has to do a cut off somewhere its just so fustrating because making $ 112 per year more than someone else means you can suddenly afford private insurance and co pays. Because of this we are going to have to pull our daughter out of preschool and more from the house we are renting into a small apartment in 2 monthes when our lease ends just to afford private insurance and even then its going to be very tight because my daughter takes 5 medicines a day for medical problems and my son take 3 daily. How do I tell my 5 yr old she cant go to pre k and wehave to move away from all our friends.
I’m not trying to sound greedy and like the state owes us insurance help, this is a VERY SCARY situation because our 2 kids (my daughter especially) has MAJOR medical problems that our very expensive. We dont even know if we can afford it witth private insurance since you have to pay percentages for surgeries and some of her medicines are so expensive many insurance companies dont cover them…..After reading questions and comments on here I now wish we lived in the UK…..We’d be so much better off

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