We have sent letters and these are insurance company refunds. Some are telling me, the refund was issued in error, yet our office is sure that the refund is due the insurance company. Can these be voided, or must I escheat them to the states?


If we understand your question correctly, you have contacted the insurance providers who reimburse you for your patients hospital expenses. You had identified what you thought were over payments and subsequently issued a refund but are being told by the insurance provider the refunds were issued in error to them.

Generally in this case, the insurance providers are letting you know that you don't owe a refund to them. Unless you owe a refund to the patient then if you have documentation from the insurance provider where they indicate your refund is in error and you don't owe them any more money on the account then the funds would not be subject to escheatment. However, if our understanding is wrong as stated above then the conclusion could be different. In addition, we recommend that you may want to seek the advice of an escheatment property expert to make sure given your specific circumstances. Each state has it's own set of escheatment property law that can impact the correct action.

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