Handling large CC refunds

El Ingeniero

Level 2 Member
So. When my son was born, somehow the hospital did not bill the insurance company for his stay. They billed me directly, for $3,000 plus. Well, to me that was just another signup bonus. So I signed up for another card, paid the bill with it, and sent in a claim to my insurance company for the amount.

Little did I know, that's not how it works.

How it works is that the hospital is going to have to submit a bill to the insurance company. On the correct (federal) form. Because they are outside the contracted period for submitting the claim, the insurance company will most likely deny the claim and the hospital will be obligated to pay me back in full.

But I paid with my Citi AA Plat business card, and got the 60K signup bonus. And the hospital is not going to cut me a check, they are probably going to push the money back onto the credit card.

Questions:
1. I could care less about the 3,000 plus points for the spend, but the signup bonus makes a difference to me. If the $$$ go back on the card, am I losing my signup bonus?
2. I'd be more than happy to close the Citi AA Biz Plat (the web site is a hot mess) if that would stop the money from going back onto the card, but would there be an issue with getting the signup bonus clawed back if I do that?

PS. If you wonder why our healthcare system is a mess, I'm sure the politicians helped make it worse, but insurance companies and hospitals are definitely the primary culprits.
 

heavenlyjane

Level 2 Member
Congrats on the birth of your son!!

If you have already earned the bonus, there is a reasonable chance that it will not be clawed back when the refund comes. That has been the case with me in the past, albeit with a smaller refund than $3000.
 

italdesign

Level 2 Member
Closing the card won't prevent the refund from going back to it. If you want to be safe, spend another 3k on the card, which will give you a good defense should they clawback.
 

Suzie

Level 2 Member
I would try to get the hospital to issue you a check. Are you assuming they won't or have you already asked them? Explain to them that you have already paid the card and it will take you another two months to get it back from your cc. (and also it seems to have been a mistake by the hospital, they already inconvenienced you, etc.)

I just did this with Lowe's for $1600. Had to press hard with them. Finally last night they told me they had a gift card in the safe for me. I got them to cash it out and I walked away with $1600 in cash.

My son had a similar situation a couple of years ago where he had to pay the anesthesiologist and then insurance paid. The hospital cut him a check.

Worth a try.

And congratulations!
 

Josh F

Level 2 Member
Charity Forum Mod
Closing the card won't prevent the refund from going back to it. If you want to be safe, spend another 3k on the card, which will give you a good defense should they clawback.
This would be my take. Make sure that you factoring in the refund, you still meet the minimum spending requirements. I'd still push for the hospital to issue you a check - this is what I'ev always gotten for overpayments/incorrectly billed payments (although I've never had one that large)
 
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