She sounds horrible, wow, so betraying.

Just a guess-she sounds to be struggling financially, so is taking desperate steps to get income.

I think there is some good advice here-you could first send a certified letter outlining the issues and the money owed to you; give her a date to respond by. If she doesn't settle the issue, taking it to the attorney general could be useful. They usually have a branch just to handle health care issues. You could also get with your insurer and ask for advice. After that, your state licensing board, if needed.

Sorry about your job not working out, that sounds devastating. I only dream of starting all over with a different career, but my student loans are way maxed out. I cheer you on about reinventing your career. Do it while your younger-that's great.

After posting this it crossed my mind that she may have been filing claims to the insurance and keeping the money rather than having it sent to you. Sorry if that's overly suspicious, but this sounds overly unprofessional.