Ritter Insurance Marketing

Bloomberg (8/18, Pollack, Olmos) reported, “WellCare Health Plans Inc. will pay $35.2 million in an agreement with U.S. prosecutors in a Medicaid fraud investigation, the company said in a filing” with the Securities and Exchange Commission. But, WellCare said that the agreement does not “settle the case or limit the U.S. government and state of Florida from making further claims in their continuing investigation.” According to the filing, the payment includes “an estimated $24.5 million owed” to “the government for Medicaid mental health claims from 2002 to 2006 by two of its Florida subsidiaries.” The remaining $10.7 million will be held in escrow during the investigation. In the meantime, WellCare “remains unable to file quarterly reports because of the investigation,” according to the filing. On July 21, when WellCare restated its earnings for “the periods from 2004 through June 30, 2007,” the insurer “lowered its net income by $28 million.”