Hi Pat,
With an '02, you're obviously out of factory warranty and this repair isn't covered by CPO. Why? I don't know but believe me it isn't. Maybe your dealer wanted to try something that wasn't cost prohibitive to you as a first stab at solving the problem. My bearing replacement only cost $410 because the dealer originally thought it was covered by CPO and then had to sheepishly ask me to pay for it after Porsche said "Nein!". They cut me a deal by charging me at warranty rates. I've seen much higher prices paid by other forum members. I'd take it back to the dealer and say the tire rotation didn't work. Then be ready to pay for the bearing replacement.
Good luck. You have an 02S. We've got a couple of 01Ss with this problem in this thread. Is there a pattern? Is this a weak link in early S's?