I transferred school this semester but couldn’t start at my new school due to medical reasons and now they refuse to defer my application to next term cause I failed to reapply.
Well, it is always up to the school to make the decision. Having said that, it is always good to meet in person, explain your situation and get it clarified. If you are in the US and have an option, meet them or at least call and get it sorted out. If not, you should re-apply again I guess, if you really want to study in that school.