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WellCare Settlement Tally Tops $427 Million

John Commins, for HealthLeaders Media, August 9, 2010

In late June, a federal judge unsealed a whistleblower complaint that accused WellCare of egregious conduct, including dumping hundreds of sick newborns and terminally ill patients from the membership rolls to bolster profits. Florida Attorney General Bill McCollum told Health News Florida in July that former executives at WellCare are the subject of state and federal criminal investigations.

Also Monday, WellCare announced a "strategic and organizational restructuring" that will result in layoffs for fewer than 100 employees, and the elimination of a "significant number" of open positions.

"Changes of this nature are difficult, and we are sensitive to the potential impacts to our associates, members, government customers, and business partners," said WellCare CEO Alec Cunningham. "Nevertheless, we believe these steps will strengthen our position for future opportunities and new requirements in government-sponsored healthcare programs."

WellCare provides Medicare and Medicaid managed care services for approximately 2.2 million people nationwide.

John Commins is a senior editor with HealthLeaders Media.

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