Government
WellCare to pay $80 million to resolve alleged Florida Medicaid fraud
NEWS IN BRIEF — Posted May 18, 2009
WellCare Health Plans Inc. agreed to pay $80 million to avoid federal charges for allegedly defrauding Florida's Medicaid programs.
The health insurer will pay $40 million in restitution to the state's Medicaid and Healthy Kids programs under the three-year deferred prosecution agreement reached in May. WellCare will forfeit another $40 million in civil fines.
To avoid a fraud conviction, WellCare also agreed to:
- Accept responsibility for the conduct that led to the government investigation.
- Continue cooperating in the federal probe of former WellCare executive employees.
- Hire an independent monitor to review its business practices.
- Update procedures for reporting federal and state health care program information.
Dept. of Health and Human Services Inspector General Daniel R. Levinson said the agreement should serve as a "clear warning that those who steal from Medicaid will be aggressively pursued."
WellCare executives said in a statement that the company is cooperating fully in the probe and that compliance with all laws and regulations is a top priority for the company.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2009/05/18/gvbf0518.htm.
