Hmm... UM NO. lolThat's basically stealing.
All I have found is that a policy has to be put in place to handle credits, not necessarily refund them by law. I also have to add that the adjustment codes used for this purpose have descriptions that indicate the credit is the patient's. The policy is that if the patient calls to question, then we will refund the money (the same applies to insurance over payments), so does that somehow "protect" them should they be audited? We do apply patient credits to any open balances on their accounts, but anything left over is adjusted.
Ask your provider this , Since you overpaid your malpractice/liability insurance, your agent will be providing lunch for her staff, is that ok?