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How can you fight a collection agency to retrieve my credit spotting a medical bill from my health ins. should pay?

The agency Recovery contact me and show them that they should have been paid to date, I faxed the details of health insurance approval that allows the procedure doctor asking me to pay. My agency, Medicare would have paid the bill for $ 750. Even if the collection agency does not know who to turn to get paid, decided to come after me. I guess it's easier to come after me, then another organization fighting to get paid. "I can bring to small claims court to the credit report of my credit card and force them to stop coming after me? What if they ignore? What will they do? What's next for them? What challenges involved? All you guide me? For more information, my credit score 775 was like before this incident.

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