WellCare, feds agree on $137.5M

By Mike Wells
6/25/2010 © Health News Florida

WellCare Health Plans has announced a $137.5 million preliminary settlement with the federal government that, if executed, would halt investigations into allegations of accounting fraud.

The Tampa-based provider of Medicaid and Medicare services has been under official investigation since October 2007.

WellCare made the settlement announcement on Thursday in an SEC filing, which outlined its agreement with the civil divisions of the U.S. Department of Justice and the U.S. Attorney’s Offices for the Middle District of Florida and Connecticut.

The preliminary settlement is subject to approval of an executed written agreement. Upon its execution, the company would pay the government over a period of up to 36 months, plus interest at the prevailing Medicare Trust Fund rate.

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