I had a homebirth with a midwife. She gave me the option of having her biller bill my insurance company. I have a PPO plan and was thrilled to have a homebirth be affordable to me. Her set fee was $3,000. She asked for a payment of $1,000 by the 36th week of pregnancy and talked of a refund in the event that my insurance company paid her more than $2,000. Her biller nickled and dimed the insurance company and my midwife received $3,300 from them. She is now saying that because the insurance company assigned us to pay $1,200 that she does not owe us a refund and she'll "let" that $200 slide. I looked at our financial contract and there is a paragraph about deductible and client responsibility as assigned by insurance company that I guess I didn't notice when we signed it.
Is it common for midwives to collect more than their fee from insurance companies and keep the money that clients paid?