Hi

On March 27, 2009, I had a cheilectomy on my left foot at a medical clinic while I was between jobs, which I paid for in full ($2,000) out of my own pocket with a cashier's check upon entering the facility (they required payment up front with a cashier's check or a credit card of a type I didn't have). This was the only compensation that the surgicenter had requested, and I paid for the procedure in full on the spot, to make that absolutely clear, so there is no question that they were clearly satisfied that they were completely compensated at the time. I had declined COBRA continuation from my previous job and was not covered by any sort of health insurance at the time of the surgery, and had no specific plans at the time to get health insurance before starting my next job.

However, a couple weeks later, I learned that a new program had started which allowed me to sign up for COBRA coverage retroactively to March 1st, which I did, once again paying for it out of my own pocket. As a result, Blue Cross/Blue Shield cut two checks, each for over $1000, sending one to the surgery center where I had my foot operated on, and one to me.

I thought that was the end of it, and that I had done the surgery center quite a favor in effect by signing up for retroactive COBRA, but imagine my reaction when I received a letter yesterday where they essentially commanded me to 'send the original check' that I had received from BCBS.

What I want to know is what scam they are trying to pull here? I paid good money to reactivate COBRA and now the surgicenter wants to pick my pocket of all the resulting BCBS benefits because of it after I paid them in full the agreed upon cost of the procedure and they got well over a $1,000 bonus from BCBS on top of that, thanks to my signing up for retroactive COBRA shortly thereafter.

Should I tell them that the BCBS original check is long gone (which it is), and that I'll send them the total amount they request but only if they refund my $2,000? I refuse to be played like a fool or a charity here and will not accept a gouging by this surgical center. Should I take this to small claims court if they continue to harass me about this?

Any advice is welcome.