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Received letter from previous insurance carrier


lakeeire
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Yesterday, I received a letter from Humana, stating they overpaid $3000.00 to the hospital I had my surgery at last May 2006. They want me to pay them back or they will send to outside collection agency withing 30 days. Reason they give was Paid after termination of coverage. what should I do?:?:

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Tell them that since they knew or should have known that the policy was no longer effective and since they were not under duress at the time of payment to the hospital, that the voluntary paymrent rule applies and you owe nothing.

"When the voluntary-payment rule is applied between private parties, as in Ladd, the underlying public policy has been described as follows:

"[A] party who pays a claim is deemed to have made his own decision that it is justly due. If he thinks otherwise, he should resist. He should not pay out his money, leading the other party to act as though the matter were closed, and then be in a position to change his mind and invoke the aid of the courts to get it back.R.G. McClung Cotton Co. v. Cotton Concentration Co., 479 S.W.2d 733, 743 (Tex. Civ. App.--Dallas 1972, writ ref'd n.r.e.). We have acknowledged that public policy favors protecting the finality of payments when a person is aware of all the facts upon which the liability to make payment depends, and there is no fraud, deception, duress, or coercion involved. Because of these policy concerns, this Court and Texas courts of appeals have, at times, applied the voluntary-payment [*12] rule between private parties. See Pennell, 243 S.W.2d at 575-76 (disallowing an insurance company recovery of payments made under a mistake of law because "money voluntarily paid on a claim of right, with full knowledge of all the facts, in the absence of fraud, duress, or compulsion, cannot be recovered back merely because the party at the time of payment was ignorant of or mistook the law as to his liability"); Gilliam v. Alford, 69 Tex. 267, 6 S.W. 757, 759 (Tex. 1887) (disallowing recovery of a "voluntary settlement" when "the money was paid under a mistake of law; for it is well settled that money paid under a mistake of law with respect to liability to make payment, but with full knowledge of all the facts on which the claim for payment is based, and on which the right to resist it depends, cannot be recovered"); Ladd, 53 Tex. at 192-94; see also Sw. Indus. Import & Export, Inc. v. Borneo Sumatra Trading Co., 666 S.W.2d 625 (Tex. App.--Houston [1st Dist.] 1984, writ ref'd n.r.e.) (discussing the rule in the context of sale of goods); R.G. McClung Cotton Co., 479 S.W.2d at 743-44 (discussing [*13] the rule in the context of sale of goods, but allowing recovery because payor never intended to surrender his claim for damages for breach of contract); Runcie v. Runcie, 407 S.W.2d 861 (Tex. Civ. App.--Amarillo 1966, writ ref'd n.r.e.) (discussing the rule in the context of payment of bank note); Am. Cas. & Life Ins. Co. v. Boyd, 394 S.W.2d 685 (Tex. Civ. App.--Tyler 1965, no writ) (discussing the rule in context of payment of insurance premiums); but see TCI Cablevision of Dallas, Inc. v. Owens, 8 S.W.3d 837 (Tex. App.--Beaumont 2000, pet. dism'd by agr.) (discussing the voluntary payment rule in the context of cable late fees but concluding "it is far from clear that the voluntary payment doctrine applies here")."

BMG Direct Mktg. v. Peake, 2005 Tex. LEXIS 846,*;178 S.W.3d 763;

49 Tex. Sup. J. 84

If they pursist and sue you, one of your defenses should be that the claim is barred under the voluntary payment rule--or if the SOL is about to run and you want a court order affriming your defense, you could seek declaratory relief and an injunction against the insurer.

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They overpaid the hospital, not you. You don't owe them anything. It was their mistake in the first place to have paid after termination of the policy.

If they did not pay you they have no legal right to demand the money back from you. Insurance companies overpay all the time due to their own mistakes. Often as you have seen it takes years for them to catch these errors and at that point they ask for a refund of the money.

Once this is straightened out however you will most likely have the hospital billing you. Did you have another insurance at this point?

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