Policy & oversight
Federal Government Sues Dallas Firm Over Medicare Claims That Described Adhesive Ear Devices as Surgically Implanted Neurostimulators
A civil complaint filed August 19 alleges that NeuroSolutions 100 and its owner submitted more than 4.5 million dollars in false Medicare claims by billing temporary non-surgical ear units as though they had been surgically implanted.
By the Goodsurance editorial teamAugust 20, 2026
The U.S. Attorney's Office for the District of South Dakota filed a civil complaint on August 19, 2026, against NeuroSolutions 100, LLC, of Dallas, Texas, and the company's owner, Michael Bingham, of Laurel Springs, North Carolina. The government seeks recovery of 4,591,003 dollars in allegedly false Medicare claims.
The complaint, brought under the False Claims Act and investigated jointly by HHS-OIG and CMS, alleges that NeuroSolutions billed Medicare for the surgical implantation of electro-neurostimulators when no surgery took place. According to the complaint, the devices were temporary, non-surgical units applied to or just behind a patient's ear using an adhesive or needles, in a manner similar to acupuncture. The company allegedly described them to Medicare as surgically implanted in order to obtain a far higher reimbursement rate.
Medicare paid for what it thought were surgical implants. The government says they were adhesive ear patches. It wants 4.6 million dollars back.
The case is part of the 2026 National Health Care Fraud Takedown, in which the Justice Department and HHS-OIG together charged 455 defendants in connection with more than 6.5 billion dollars in alleged fraud nationwide.
A civil complaint is an allegation, not a finding of liability. The defendants are presumed innocent unless found liable in court.
In plain words
The federal government sued a company it says lied to Medicare about what kind of medical device it provided. The company is called NeuroSolutions 100 and is based in Dallas. The government says the company told Medicare it was surgically placing devices inside patients. In reality, the devices were small units stuck on the outside of the ear, not implanted at all. Medicare paid as if real surgeries had happened. The government says Medicare overpaid and wants about 4.6 million dollars back. Billing for something more expensive than what actually happened is called upcoding. This case is part of a larger 2026 fraud sweep that charged hundreds of people across the country. Filing a lawsuit is not the same as finding someone guilty.
Understand the basics first
Source: HHS-OIG
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