Leslie,
For OON network payments who recieve checks, what they are doing is not illegal. The checks are made out to them and they have the right to cash them. Yes, they do owe you money and are obligated to pay. They can be sued in small claims court ( I have a lawyer chase large amounts) or be sent to collection. What they may do that is illegal is to not pay taxes on this money as they are getting a payment from the insurance carrier. They theoretically can be threatened that the infor will be sent to the IRS.
If the check was sent to them when you are in network, it is the insurance companies problem and they need to issue you another check.
Having a card on file will possibly mitigate this issue. However, if they are really crooked, they will contest the charges and/or cancel their card after this occurs.
