If your doctors are willing to provide documentation of the need for the brand name, then hopefully the insurance company will waive the fee. Let us know how it goes!
The generic is new. Most generics are made by different companies, some of which are better than others. Walgreens tends to use the better generics, CVS the cheapest, but there are exceptions. Ask if more than one company makes the generic -- Teva, for example, the largest maker of generics, makes the worst ones, or at least the ones that have raised the most regulatory issues. It might be the generic manufacturer, not necessarily the generic. If it is the generic, all insurance companies have an appeals process, but that doesn't mean you'll win. One way around this is to buy from a foreign country, if you can find a way to do that -- the US has the highest drug prices by far because of our relative lack of economic regulation. Many people go to Mexico or Canada to get their prescriptions because of this, but that route isn't available to most of us. Good luck.
I'm not sure if you can get the penalty waived or not. Your Drs are behind you so I would have them go ahead and send the letters to your insurance company. It would'nt hurt to do so.
I've found that Walgreens can be much higher on their meds than some other places. Make some calls to some other places to see if you can get it at a better price. I'm not promoting Walmart but their med prices are much cheaper than Walgreens. They have been for me anyway. Give them a call. I bet they will be cheaper.