Corewell Health Sued Over Alleged Illegal Patient Debt Collection
Michelle Rzanca, representing the estate of Jordan Field, filed a proposed class action May 22 in the U.S. District Court for the Eastern District of Michigan against Corewell Health and collection agency DCM Services. The suit alleges Corewell billed $61,609.62 for Field's care, Blue Cross Blue Shield paid $19,448.92, and Corewell and DCM then sought roughly $42,000 from his estate, calling the debt "fake" because the insurer payment satisfied the bill under Corewell's contract. The complaint alleges Corewell applies this practice broadly, treating the gap between chargemaster rates and reduced payments from commercial insurers, Medicare and Medicaid as collectible debt, including when patients may have third-party injury claims. Corewell has denied the allegations, argued the debt was valid and it is not a legal "debt collector," and moved to dismiss; an amended complaint is due Nov. 16 per an Oct. 2 court order.