Yesterday, WellCare Health Plans agreed to pay $120,000 in fines and stated it will not contest the Florida Elections Commission's finding of probable cause that political contributions made by the Tampa-based HMO were in violation of state law.
During a four-year period ending in 2007, four WellCare subsidaries and executives contributed over $2.4 million to Florida politicians -- 95 percent to Republican candidates.
Some number of these campaign contributions exceeded legal limits.
The company had reported its suspected violations to the Florida Elections Commission in June of this year in an effort to demonstrate its "committment to regulartory compliance, transparency and accountability," stated the company's vice chair, Thomas F. O'Neill III.
WellCare made headlines earlier this year when the company agreed to pay out $80 million in restitution for charges of defrauding the Florida Health Kids Corporation and Florida Medicaid program of $40 million, to avoid prosecution for health care fraud.
In the May 5, 2009 edition, the Tampa Bay Business Journal Reported:
WellCare Health Plans Inc. agreed to pay $80 million as part of a deferred prosecution agreement with the U.S. Attorney’s office for the Middle District of Florida.
WellCare was charged in a scheme to defraud the Florida Medicaid program and the Florida Healthy Kids Corp., the U.S. Attorney’s office said in a release. The deferred prosecution agreement allows WellCare (NYSE: WCG), a managed care company headquartered in Tampa, to avoid a health care fraud conviction so long as the company complies with requirements.
Under the agreement, WellCare will pay $40 million in restitution to the Florida agencies and another $40 million in civil forfeiture.