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Claim Processing - Insurance Company Issued Stop Payment

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Junior Member
What is the name of your state? New Jersey

I submitted 2 separate invoices for claims on durable medical goods (both invoices are related to the same device, really). After many hurdles with the insurance company "losing" the mailed in papers and denying the claims for nonsense reasons, the claim was finally approved on a 60%/40% basis (they reimbursed 60% of the costs). I was to be sent two separate checks for the two separate claims.

On Friday morning I received the smaller amount of these two checks and deposited it into my account. Mind you, that the check came with a statement specifically indicating the breakdown of the claim. After depositing the check, I find that the insurance company left me a voicemail advising me not to deposit these checks because the claim should have been denied to begin with, that they are issuing a stop payment order on these checks, and that I will be responsible for any fees associated with trying to deposit the checks. While I deposited the smaller check, I still have not received the other, larger one.

Now my question: after someone issues you payment which clearly is not a clerical error (once again, the details of the claim are listed along with the check), can they simply retract payment? Isn't this a legally binding contract for which they must now be responsible?

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