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If you think they are scamming you, ask them the cost to replace the hose if done with the waterpump work or if done separately. If they quote you the exact same cost, they are not being truthful. There should be some savings to the job being done at the same time as the waterpump, even if it is only the coolant drain, fill, and purge.
You can always tell them only to fix the waterpump. You can then get estimates from other dealers or independents to do just the hose.
Just as a note of caution, I believe your 550 has the N63 engine. That engine, at least the ones from ~2008-2014 are known to have tons of problems. Be happy that you have it as a lease and do not own it.
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bone stock
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