Health Insurance for my Daughter

To make a long story short, I am trying to get off Peachcare for Kids-Georgia state sponsored health insurance program. My 3 year old has had 2 sets of tubes, the last were put in May '07. Her father and I are now living together, so are legally (with our combined income) ineligible for this insurance. Therefore, instead of breaking the law, I am trying to obtain health insurance for her under an individual plan (her father is an independent contractor/carpenter and I work for a small business with no group health). We live in a small town, very little work, therefore, I can't find a job with group health without taking a tremendous pay cut, which we can't afford to do. Now, I've been told that due to my daughter's pre-exisiting condition, she cannot receive treatment for any ear infections, etc. for at least one year, if she gets approved. Most of the insurance companies I've spoken with informed me that due to her extensive medical care for her ears, she may be turned down for coverage. So, now, I may be without health coverage on my 3 year old because I'm choosing not to break the law, like a lot of other people do. Any advice, suggestions??? I think it's ridiculous to put this stipulation on someone that is trying to come off of a state-sponsored health insurance program and pay OUT OF POCKET for an individual plan, only to be turned down for one of the most common pre-existing conditions a child may have!!!