You got advice from a GP, but in this very sensitive area I think you need to consult a Urologist & also possibly someone familiar with surgery of the area. The GP may be partially correct, but the skin of the penis definitely is made to expand (as during erection), so I think it's not out of the question a good surgeon might be able to correct this.
Yeah, I think so. Plastic surgeons specialize in performing surgeries that leave minimal scarring, etc., so that's probably good advice. You wouldn't want to correct one problem only to be left with another one due to poor appearance. I guess the charge for plastic surgery might be higher, hopefully your insurance would still cover at least part of it. Good luck...