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Insurance Check Mistake

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MicheleK

Junior Member
What is the name of your state? OK

My mother carries an insurance where you get reimbursed for time spent in the hospital (she uses this money to pay her co-pay on her medicare supplement). She just had her knee replaced in Sept and submitted a claim...last week she got a check in the mail for $3,000. Thinking this was for the claim she submitted she cashed the check, waited until it posted to her account and sent off several checks to make her co-payments from the surgery. She then gets a phone call from the insurance company saying they haven't even reviewed her claim yet, and they are stopping payment on her claim check because it was issued in error.

Well, she of course was upset and spoke again to the lady at the insurance company. She said she would stop the stop payment and send her a letter requesting the money back.

What can we do??? This is crazy my mother is disabled and on a fixed income...what recourse does the insurance company have against my mother???
 


moburkes

Senior Member
Their recourse? Well, once they stop payment on the draft, it will cause your mother bounced check fees, but THEY will receive their money back. Insurance companies can stop payment on a cashed check.

If you mother is on a fixed income, what made her think that this check, which only replaces a PORTION of her income, was correct?
 

MicheleK

Junior Member
Well, she filed a claim with them...that was supposed to be paid sometime ago (that they keep dragging their feet on). As I stated, they said they would NOT stop payment on the check, after I explained to them that she had written checks on it to pay medical co-pays.

What I was wondering is I'm sure they're expecting the money back at some point. I'm just wondering what recourse they can take against her since they are allowing her to have the check at this time.

Sorry if I wasn't clear enough.
 

moburkes

Senior Member
they are stopping payment on her claim check because it was issued in error.

Well, she of course was upset and spoke again to the lady at the insurance company. She said she would stop the stop payment and send her a letter requesting the money back.
I just thought that you mistyped. Sorry. They will subtract it from any amount that they may owe her. It was a mistake that they are allowed to correct.
 

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