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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?

Is it common for midwives to collect more than their fee from insurance companies and keep the money that clients paid?