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Bay City Doctor Michael Neret Sued Over Nearly $500,000 in Medicare Billing, What the Federal False Claims Act Lawsuit Alleges

The United States has filed a civil False Claims Act lawsuit against Dr. Michael Neret, a Bay City, Texas physician, alleging he fraudulently billed Medicare nearly $500,000 for surgical neurostimulator electrode implantations.

This is a government lawsuit, not a patient settlement. There is no claim form, deadline or payment for patients. It is a civil case, and Neret has not been reported as criminally charged. The allegations are unproven, and the Justice Department says there has been no determination of liability.

Quick Facts: United States of America v. Neret

DetailInformation
DefendantDr. Michael Neret, who owns and manages Neret MD Medical Clinic
LocationsBay City and Lake Jackson, Texas
PlaintiffUnited States of America
CaseUnited States of America v. Neret, No. 4:2026cv07450
CourtU.S. District Court for the Southern District of Texas
Case typeCivil False Claims Act lawsuit, 31 U.S.C. § 3729
Complaint filedSeptember 4, 2026
DOJ announcementSeptember 29, 2026
Alleged Medicare billingNearly $500,000
Procedures at issueSurgical neurostimulator electrode implantations
Investigation assistanceHHS Office of Inspector General
Government attorneysAssistant U.S. Attorneys Laura E. Collins and Michelle Luong
Liability establishedNo
Patient settlement or claim formNone

What Does the Federal Complaint Allege Dr. Michael Neret Billed to Medicare?

According to the Justice Department, the complaint alleges Neret billed Medicare for surgical neurostimulator electrode implantations. These are complex procedures that require an operating room, and Medicare pays thousands of dollars for each one.

The government alleges Neret did not perform those surgeries. Instead, it says, non-physician practitioners and non-clinical staff used inexpensive electro-acupuncture devices during brief in-office sessions, inserting small electrode wires into patients’ skin and securing the devices behind their ears with adhesive.

What Does the Lawsuit Allege About Narcotics Prescriptions at Neret MD Medical Clinic?

The complaint further alleges that Neret encouraged staff to use the electro-acupuncture devices without explaining how the procedures would benefit patients. It also alleges he knew the devices were non-billable and used the procedures to justify prescribing narcotics for pain management.

These are allegations only. The lawsuit is civil, and the billing allegations are the basis of the claim.

Is United States v. Neret a Criminal Case?

No. The federal docket identifies the claim as a False Claims Act action under 31 U.S.C. § 3729. Nothing in the DOJ announcement shows Neret has been criminally charged, so he should not be described as indicted. A civil complaint describes what the plaintiff claims and does not establish liability.

How Does the False Claims Act Apply to the Michael Neret Medicare Lawsuit?

The False Claims Act (31 U.S.C. §§ 3729-3733) is a main federal tool for pursuing fraud against government programs, including Medicare. A person can face civil liability for knowingly presenting, or causing someone to present, a false or fraudulent claim for government payment. The statute provides for treble damages plus civil penalties when its requirements are met.

That does not mean the government will recover three times $500,000. The nearly $500,000 is the amount DOJ says was allegedly billed, not a judgment. Any recovery would depend on what the government proves, how damages are calculated and how the case ends. The fact that Medicare paid a claim does not by itself prove fraud.

Bay City Doctor Michael Neret Sued Over Nearly $500,000 in Medicare Billing, What the Federal False Claims Act Lawsuit Alleges

Can Neret MD Medical Clinic Patients Get Money From the Lawsuit?

No. The United States filed the case to pursue alleged false Medicare billing. No class action, patient settlement fund or claim form has been announced, and nothing in the DOJ release creates a payment program for patients. The complaint also does not establish that every patient who received the disputed treatment was harmed.

What Should Neret MD Medical Clinic Patients Do If Medicare Lists a Service They Did Not Receive?

  1. Review your Medicare records. Compare the Medicare Summary Notice with the services and dates you actually received.
  2. Ask the clinic. Some discrepancies are billing mistakes rather than fraud.
  3. Report suspected fraud to Medicare at 1-800-MEDICARE (1-800-633-4227).
  4. Report to HHS-OIG at 1-800-HHS-TIPS (1-800-447-8477).
  5. Keep records, including billing statements, notices and correspondence.

Inaccurate charges can also leave an incorrect procedure history in your Medicare record, which is another reason to review it. For another example of a clinic Medicare case, see Appleton Clinic Pays $382K To Settle Medicare Fraud Allegations.

Could Michael Neret Face a Criminal Case or Lose His License?

The September 2026 lawsuit is civil. A criminal prosecution would require separate charges, and none were identified in the sources reviewed. The same investigation can sometimes lead to separate civil, criminal or licensing proceedings, but one cannot be assumed from another. A civil lawsuit does not itself revoke a medical license.

Who Investigated the Michael Neret Medicare Allegations?

The HHS Office of Inspector General assisted with the investigation, according to the Justice Department. Assistant U.S. Attorneys Laura E. Collins and Michelle Luong are handling the case for the U.S. Attorney’s Office for the Southern District of Texas.

What Happens Next in the Michael Neret Federal Lawsuit?

The docket shows the complaint and a summons request for Neret were filed September 4, 2026. Next steps can include service of the complaint, Neret’s answer or other response, motions, discovery, and possibly settlement. The public docket copy reviewed showed only the September 4 filings, so check the federal court record, such as PACER, for later developments. No settlement, judgment or finding of liability was identified.

Key Dates in the Michael Neret Medicare Case

DateEvent
September 4, 2026United States files complaint and requests a summons
September 29, 2026Justice Department announces the lawsuit
October 3, 2026No settlement, judgment or liability finding reported

Frequently Asked Questions About the Michael Neret Medicare Fraud Lawsuit

Is Dr. Michael Neret being sued for Medicare fraud?

Yes. The United States filed a civil False Claims Act lawsuit alleging he fraudulently billed Medicare nearly $500,000 for surgical neurostimulator electrode implantations the government says were not performed.

What is the case number for United States v. Neret?

4:2026cv07450, in the U.S. District Court for the Southern District of Texas.

What does the government say actually happened?

That non-physician practitioners and non-clinical staff used inexpensive electro-acupuncture devices during brief in-office sessions instead of performing the billed surgeries.

Does the lawsuit mention narcotics prescriptions?

Yes. The complaint alleges Neret knew the devices were non-billable and used the procedures to justify prescribing narcotics for pain management. These are allegations only.

Is it a criminal case, and did a court find Neret liable?

No to both. It is a civil case, and the DOJ states the claims are allegations with no determination of liability.

Can Neret MD Medical Clinic patients file a settlement claim?

No patient settlement fund or claim form has been announced.

How can someone report suspected Medicare fraud?

Call 1-800-MEDICARE (1-800-633-4227) or HHS-OIG at 1-800-HHS-TIPS (1-800-447-8477).

Can someone receive money for reporting Medicare fraud?

The False Claims Act has a qui tam provision that can let qualifying individuals sue on behalf of the government and share in a recovery. That is a separate legal process from a hotline complaint, and eligibility depends on the facts. The DOJ release does not say whether a whistleblower started this case.

Disclaimer: This article is general legal information, not legal advice. Allegations in a complaint are not findings of fact or liability. Consult a licensed attorney about your situation.

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. All facts verified against the U.S. Attorney’s Office for the Southern District of Texas press release of September 29, 2026, the federal docket for United States of America v. Neret (No. 4:2026cv07450), 31 U.S.C. § 3729, and Medicare and HHS-OIG fraud-reporting guidance, as of October 3, 2026. Last Updated: October 3, 2026.

About the Author

Israr Ahmad is a legal content researcher with 4+ years of experience covering class action settlements and consumer rights cases. He has researched and published coverage of 2,500+ settlements using verified court records, settlement administrator filings, and government sources. Learn more about Israr.

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