Hydrangea article from Washington Post

http://m.washingtonpost.com/lifestyle/home/reinventing-the-winter-weary-hydrangea/2014/06/03/29c70cde-e685-11e3-a86b-362fd5443d19_story.html
 
Also, Rosemary Harris from Acer Gardens says that last winter was unusually harsh (see WP article above) and that most suffered.  The bare wood is due to winter injury and she says to cut back stalks to basal growth.  May not be any flowering this year.  As for the insects, treat the bush if you can't just cut the affected parts away.