Insurance/Hospital billing issue

Sorry if I’m posting to the wrong place, I also posted in and r/healthcare but someone recommended I post over here as well. I’ll try to include a TLDR at the end because this is very long and convoluted, also if it matters this happened at a hospital in Grants Pass, OR

My daughter was born 3/31/23, my wife was in the hospital from 3/30/23 to 4/02/23. Shortly after leaving the hospital billed my insurance, I’m not sure if I’m allowed to name them so we’ll call them Insurance_1. They handled it, and I started paying down on the deductible amount they did not cover. towards the end of april I got a letter from healthcare dot gov saying I should update my info so my daughter can get coverage – which I did. This qualified me for better rates and being new to insurance I accidentally switched from Insurance_1 to a new company, Insurance_2.

Couple months later when going to pay down on my hospital bill I noticed my bill went from 6k back up to the original 36k amount. So i called, they said my insurance pulled the money because I wasn’t covered through them for the whole procedure. For some reason my coverage with Insurance_1 ended on 3/30 and my coverage with insurance_2 began 3/31. No lapse in coverage, but my primary provider changed mid “operation”. Updated the hospital, told them what happened, they said no big, this happens all the time, we’ll get it sorted out.

Now the original claim to Insurance_1 i’m going to call #800, it was amended to #801 and #802,

Insurance_1 allowed 4.9k of the 6.2k on #801 but denied #802 because I wasn’t covered with them on those dates.

So I called the hospital and tried to clarify that the #802 bill was supposed to go to Insurance_2.

they generated a new claim #18200 for insurance_2 in the full 36k amount for 3/30-4/02, Insurance_2 denied because I wasn’t covered with them for 3/30. The hospital told me I had to appeal with insurance. I called both companies, was told by Insurance_1 they covered #801 but not #802 because of the dates. Insurance_2 said they denied because I wasn’t covered by them 3/30 and to have the hospital amend the bill to just be for 3/31-4/02 and it would be covered. I notified the hospital again to try and clarify as much.

The hospital then created an entirely new bill #700 for insurance_1 and sent it in, it was sent in AFTER the 12mo limit for timely filing and was denied because of the late filing, also because of the insurance dates. Once again I called the hospital, tried to sort it out (I can’t talk to the actual billers at this hospital, they are located in another state and “only communicate via email”). I explained why I can’t appeal for insurance_1 because according to them they already covered #801, #802 i wasn’t covered on those dates by them and #700 was filed too late to even consider. So the hospital amended #800 yet again into #803 which was the exact same as #801 but was denied because it was issued too late AND because it was already handled.

The hospital is now refusing to contact insurance_2 and amend the dates/amounts because they say it’s federally illegal to split the bill of the procedure between two insurance companies even though they technically already split the bill. They also keep trying to charge me the full amount for the 6.2k that was already handled by insurance. This has also been dragging on for so long i’m now hitting the end of the allowable time to even amend the bill for insurance_2 and the one they told me to appeal with insurance_1 was issued too late and for the wrong dates.

So I’m at a loss on what to do now, do I just let it go to collections and fight it in court? The total amount without insurance at all is 36k with the “allowed” amount from #801 the total should be 34k plus I had paid down about 1200 before the whole thing turned into a mess. Also will this be small claims or big boy court?

TLDR

Helathcare dot gov split my coverage in the middle of a pregnancy and the hospital refuses to bill both insurance companies for the specific days so now nobody is paying anything. So even though I had no lapse in coverage at all, I’m going to be liable for 34k?