We had a homebirth with a very reputable midwifery practice in the area. Had a great experience, wonderful and attentive care. We signed a contract to pay $4500, $1000 of which was a deposit. We paid the deposit and the rest in payments throughout the pregnancy but the complete $4500 was paid by the baby's birth date. Our midwives use a billing company to bill the insurance and as I understand they often "overbill" since insurances generally underpay for homebirths. In our case, our insurance far overpaid what our contract for our midwife was signed for and we received an additional $2000 from the insurance company, in a check made out to us.
We figured it was lucky, and because we are a one income family, had a new (third) baby and were moving in a month, we put the money to use. However, our midwives informed us that the money belongs to them, and sent us a bill saying we owe them that extra $2000, even though our contract was for $4500. They agreed to let us pay them monthly until it was paid off. However I just spoke to a friend who had a baby with the same midwives and she said she received $700 back from overages from the insurance company.
I am just so confused? Does it sound right that we would owe that money to the midwife?