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GEICO alleges $5.1M fake billing scheme for bone stimulators
The insurer says it already paid more than $1.2 million tied to the disputed claims.
GEICO has filed a 12-count complaint alleging that three durable medical equipment companies submitted $5.1 million in alleged no-fault billing for car-accident-related devices that were prescribed for soft-tissue strains rather than more severe injuries, according to Insurance Business.
The insurer, which is the plaintiff, says the defendants are TM Recovery Health Corp., Health Star Advanced Corp., and BI Shell Rd Corp., and alleges the firms were secretly controlled by a single unidentified owner through paper companies.
Insurance Business reports that GEICO alleges the billing operation started in mid-2025 and ran through early 2026, with TM Recovery billing for June through August 2025, Health Star billing for September through December 2025, and BI Shell billing from late November 2025 into March 2026.
GEICO says the complaint was filed on September 25, 2026, in the US District Court for the Eastern District of New York, and that it has already paid out more than $1.2 million, about $509 of which is described in the filing as already paid.