WellCare to pay $32.5M settlement

WellCare Health Plans has agreed to pay $32.5 million to state and federal officials as part of an investigation into its Medicaid contract with the state of Florida. The payment is based on an estimate of the total potential refund the two WellCare subsidiaries might owe to the Florida Agency for Health Care Administration, minus any interest, fines, penalties or other assessments it may face. The settlement comes less than a year after the company's Tampa, FL headquarters were raided by federal and state authorities.

A few weeks ago the company, which provides managed care services for government-sponsored health plans, disclosed that it had found accounting errors related to contracts with the Agency for Health Care Administration, the Florida Healthy Kids Corp., and the Illinois Department of Health and Family Services. WellCare said that due to the errors, it owed as much as $46.5 million in refunds under those contracts. It also said that it expected to restate earnings for 2004 through 2006, as well as the first half of 2007, as a result of its findings.

To learn more about the settlement:
- read this Orlando Business Journal piece

Related Article:
WellCare budgets $35 million for employee retention

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