Neurostimulators distributor to pay $1M to resolve False Claims liability

Azon Medical agreed to pay $1 million to resolve liability under the False Claims Act for alleged improper billing of P-Stim neurostimulators, the U.S. Attorney’s Office Eastern District of Pennsylvania.

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Between September 2016 and October 2016, the company allegedly sold the neurostimulators as reimbursable by Medicare under a code used for implantable neurostimulator devices, according to a Sept. 19 news release. 

Those codes are intended for surgically implanted devices, but Azon’s P-Stim (also branded as AnSiStim) are applied with an adhesive and a limited amount of needles without surgery, anesthesia or the help of a surgeon. Medicare doesn’t reimburse for acupuncture or acupuncture devices like AnSiStim or similar devices.

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