I have BCBS Federal and was just banded 12/23/11. I started the process back in June and had to do 4 months monitored weight loss program, 2 nutrition consultations, 2 year history of obesity (one chart note from PCP for the previous 2 yrs with a BMI of >35, and a letter from PCP stating I had not smoked in 6 months or been treated for substance abuse in a year. Those were the insurance requirements......I also had to do EKG, a lung function test, blood work, a sleep study, and have a letter from my endocrinologist and adjustment of my insulin pump for surgery. BCBS took about 30 days to approve. I haven't seen any explanation of benefits yet...so I can't really speak for the hospita/anesthesia costs.
Good Luck.