WellCare's settlement with the Department of Justice over allegations that the Tampa-based insurer overcharged Medicare by about $46 million finally has gone into effect, reported the Tampa Bay Business Journal. Although the Justice Department originally proposed the settlement two years ago, a whistleblower involved in the investigation of WellCare just recently withdrew his objections to the settlement terms. WellCare will make the $137.5 million fine and restitution payments over three years and, in exchange, federal and state authorities will release the insurer from any civil or administrative monetary claim under the False Claims Act, according to the Securities and Exchange Commission filing.
"We are pleased that these matters are fully resolved," WellCare CEO Alec Cunningham said. "WellCare is a transformed company that is focused on providing quality, cost-effective health care solutions for our members, providers and government customers." Article