WellCare Whistleblower Suit Unsealed as Tampa U.S. Attorney's Office Moves Toward Settlement

A whistleblower lawsuit against WellCare Health Plans filed four years ago in Florida by a financial analyst at the insurance company has been unsealed by a U.S. District Court judge after he learned the U.S. Attorney's Office in Tampa was considering settling with WellCare for $137.5 million, less than half the amount the whistleblower alleged was fraudulently billed to Medicare and Medicaid, according to a report by the Miami Herald.

The whistleblower complaint alleged that WellCare rewarded employees for taking away enrollment status from sick newborns and terminally ill patients and defrauded Medicare and Medicaid programs in several states, including Florida, out of $400 million to $600 million, according the report.

The complaint alleges the insurer defrauded Medicare by transferring funds between accounts to make the cost of care appear higher and that WellCare never paid back overpayments, which is required by law, among other allegations.

Read the Miami Herald report on the WellCare whistleblower suit.

Read other Becker's coverage on WellCare.

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