Are they stuck on the 1.05 per unit price, or is it the monthly price the true limit, or are they limit on both?
If the limit is just the 162.50 per month then you can go with higher quality higher priced diapers that you won't have to change as much and end up with a cheaper monthly cost. For example you can get a cheap Depends for like $0.85 per unit or Abenas for like $1.30, but when you're changing the Depends 6+ times a day and the Abena only 3 times, you end up with the Depends costing $7.65 per day and the more expensive per unit Abena only costing $3.90 per day.
This is one of the things I hate and try to speak out about when I can, insurance companies have a tendency to only approve the "bare minimum" and with diapers there arise multiple issues with that. First of being that the cheaper per unit diapers usually end up actually costing more per day or per month because they aren't proportionally cheaper to their lesser quality as I showed an example of above. When you're changing twice as much, they will be more expensive in the long run unless they are less than half the price which is not the case with diapers.
Second problem being that certain diapers simply don't work for certain types of incontinence, and this is especially true with the lower end diapers. Depends and other cheap store brands that you find are generally just meant for overflow incontinence, and don't have the capability of reliably handling the floods of urge incontinence, and often are about as good as Fruit of the Loom underwear at stopping fecal incontinence. But the insurance companies don't account for that and just act like "a diaper is a diaper" whereas you need diapers with better wicking for urge incontinence, and for fecal incontinence you need good leaks guards and a lower cut on the buttcheeks. But insurance companies don't account for that so you end up with a bunch of people with urge incontinence suffering by having to use bed pads and chux to soak up the leaks that their diapers not meant for their type of incontinence can't handle because they aren't meant to.
I was checking with my insurance the other day, and they just won't even cover the bare minimum that I need for my fecal incontinence, so my options literally are to pay the cost myself or deal with literal shit all over the place.