Legal Question in Insurance Law in Pennsylvania

Re: Worker's compensation

That is too complicated a question to answer here -- you need a full review by an attorney.

As a general matter, if a provider makes a prediction about the cost of the service, and the prediction turns out to be wrong, the customer is obligated to pay whatever the "actual" amount is.

At the same time, not all predictions are the same: the provider can't pretend the payment will be much lower than they know it will be, and sometimes the prediction is part of the contract and obligates the provider to charge that amount.

Your situation sounds awfully complicated, and so it needs a complete professional review (particularly of the contract language) to give you any straight answer.

The attorney general's office threat is a bit odd; it sounds like they'd have a garden-variety breach of contract claim if you didn't pay, but nothing rising to the level of criminal fraud.