WellCare can't file quarterly financial reports

WellCare Health Plans, already under investigation by far too many state and federal agencies, has reported to the Securities and Exchange Commission that it will be unable to file past quarterly financial reports. This latest news only raises further questions about the company's future viability, which was rocked by scandal since federal agents raided its head in October 2007.

This follows a recent announcement by the U.S. Department of Justice that a former employee pleaded guilty to charges that he conspired to defraud Florida Medicaid out of more than $20 million. The postponement is even more significant given that the SEC had already extended WellCare's 2007 annual report filing deadline to March 17, 2009.

The company also reports a rise in medical costs and a precipitous drop in investment income, from $30 million in the third quarter of 2007 to $8 million for the same quarter of 2008.

To learn more about WellCare's financial problems:
- read this Modern Healthcare piece (reg. req.)

Related Articles:
WellCare Health employee guilty of $20M Medicaid fraud
WellCare to pay $32.5M settlement
WellCare budgets $35M for employee retention

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