Can an insurance company approve you and then deny payment?

Why I ask this is that 4pm the day before my surgery, my surgeon's office called and said that they called to reverify the information and my insurance company said that they aren't going to cover the surgery. I said that we are going to go ahead with the surgery and if I need to fight it afterwards I will do that. But if I have an authorization letter how can they now say, oh we didnt look and see that its not a covered benefit for you. Anyone else have something like this happen? Wouldnt the hospital have to get their pre certs also? Any help would be appreciated.

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