Smartwatch not connecting with Play Music

I have had my SW3 for some time now. I use it mainly to run with so I don't have to bring my phone (galaxy s4). I have had music on the watch for months. Recently I was having an issue with the watch dropping connection with the phone. I did a factory reset on the watch and everything seemed fine. My notifications are working and it is not dropping connection anymore. However, when I go to the Play Music app to reload my music, the watch says the Phone is disconnected. I went to the Google Play Music app on my phone and checked to make the download to Android wear box is checked. Check and recheck but the watch still says the same. I have deleted and reinstalled Android Wear on my phone several times as well as done a factory reset on my watch multiple times. Occasionally the watch will say that Google Play Services is required but I checked and they are on my phone. What else can be done? I am extremely miffed because running without my phone is the main reason I got the SW3.