They would not circumcise in the NICU because it is an elective procedure. We got DS circumcised when he was about 10 weeks old by the ped urologist at the Children's Hospital. They told me it gets a bit more painful after 16 weeks. This doctor reconstructs congenitally deformed urinary tracts so I thought he was on top of things!
No problems with insurance. It was sad but mostly for my DH.
Here in the South, everyone pretty much circumcises. DS would be made fun of mercilessly as a teenager otherwise. My DH has a friend who moved from California, was uncircumcised, and made his parents let him get the procedure done as a teenager!!
I think some of the problems come from the aftercare. We were told to pull the skin down at the base of the penis to make sure there were no adhesions. He still has some slight issues, but you can pull the skin back. He actually laughs at us when we do it so I'm guessing it doesnt hurt that badly. Our ped also checks it every appt. If you neglect to do this, it may grow back.