Well admitedly it sounds like paranoia delusions to me. It does not sound like dissociation to me however. That is more of a zoning out for a period of time. Often it occurs with a rather upsetting trigger like the fear of impending doom or of one's very life being threatened. For example, PTSD is commonly linked to dossociative behavior.

Now, to my understanding anxiety can in fact lead to paranoia and delusions. Is it possible your psychiatrist was trying to get to the heart of the matter. Treat the problem and not the symptom?