WellCare Settles Government Investigation, Class Action Suit Related to Fradulent Billing

Tampa, Fla.-based health insurer WellCare announced it will pay $137.5 million to the federal government to settle ongoing investigations and $200 million to settle a class action suit related to alleged Florida Medicaid fraud, according to a Wall Street Journal report.

The $137.5 million deal with the Department of Justice is a preliminary settlement and will settle ongoing investigations by the DOJ into possible fraud by the insurer.

WellCare agreed to pay $80 million last year to settle an investigation by the Florida Attorney General into alleged fraudulent billing to the Florida Medicaid program.

The class action suit was filed by stockholders after the company's stock lost value following the Attorney General's raid of the company's headquarters in 2007, according to a report by the St. Petersburg Times.

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