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WellCare

WellCare Health Plans, Inc. is an American health insurance company that provides managed care services primarily through Medicaid, Medicare Advantage and Medicare Prescription Drug plans for members across the United States.

WellCare began operations in 1985 and has its headquarters in Tampa, Florida. It became a subsidiary of Centene Corporation in January 2020.[3]

History

WellCare began operations in 1985 in Tampa, Florida as a Medicaid provider for the State of Florida.[4] In 1992, Kiran Patel, a cardiologist and entrepreneur, purchased the company.[5][6]

In 2002, Patel sold it to a New York investment group led by George Soros and Todd Farha.[6] That same year, Todd Farha joined the company as CEO.[7][8]

In 2004, WellCare became a public company via an initial public offering. The company opened on New York Stock Exchange with a sale of 7.3 million shares, each share priced at $17.[9] In 2006, WellCare began offering Medicare Advantage plans with prescription drug benefits after the signing of the Medicare Prescription Drug, Improvement, and Modernization Act in 2003.[10]

Also, in 2006, WellCare began offering Medicare Part D plans.[11]

2007 Florida investigations

On October 24, 2007, law enforcement agents executed a search warrant on WellCare's headquarters in Tampa, Florida–based on a whistleblower complaint that provided evidence of WellCare inflating patients' treatment costs and not returning overpayments to the state. The complaint also named several employees who knew about the activities.[12][13]

In 2011, the SEC filed criminal charges against four WellCare executives. In 2013, the executives, including former CEO Todd Farha, were found guilty of the charges, including healthcare fraud and making false statements to law enforcement.[14] Between 2008 and 2012, the company agreed to pay $217.5 million to settle the claims against them.[15][16][17]

2008–2019

In January 2008, Heath Schiesser was promoted to president and CEO, replacing Todd Farha.[18] Schiesser was replaced in December 2009 by Alec Cunningham.[19]

In November 2013, WellCare appointed Chairman David Gallitano as interim CEO.[20]

In 2018, 2019, and 2020 Fortune magazine named WellCare as one of the World's Most Admired Companies.[21][22]

Centene acquisition

In January 2020, Centene Corporation acquired the company for $17 billion.[23] Following the merger, WellCare's CFO Andrew Asher became the CFO of Centene and CEO Kenneth Burdick joined the executive team at Centene.[24][25]

Acquisitions

In November 2012, Wellcare acquired Easy Choice Health Plan in California.[26]

UnitedHealthcare's South Carolina Medicaid business was acquired in February 2013.[27] In April of that year, Aetna's Medicaid business in Missouri, Missouri Care, was acquired.[28]

The Windsor Health Group was acquired by WellCare in January 2014.[29][30]

In January 2017 Care1st Health Plan Arizona, a subsidiary of Care1st Health Plan and Blue Shield of California affiliate was acquired.[31] Wellcare purchased Universal American[32] and Phoenix Health Plan, formerly a subsidiary of Abrazo Community Health Network, a subsidiary of Tenet Healthcare in May 2017.[33]

Meridian Health Plans of Detroit, Michigan, was acquired in September 2018.[34][35]

In September 2019,  Aetna's Medicare prescription insurance business was acquired as a condition of CVS Health's acquisition of Aetna.[36]

See also

External links

References

  1. WellCare Health Plans, Inc. 2017 Annual Report (Form 10-K) sec.gov, U.S. Securities and Exchange Commission, February 2018^
  2. US SEC: Form 10-K WellCare Health Plans, Inc. U.S. Securities and Exchange Commission, retrieved January 27, 2018^
  3. Shannon Muchmore. Centene closes $17B acquisition of WellCare Healthcare Dive, 22 January 2020, retrieved 2025-01-06^
  4. WellCare says its headquarters will remain in Tampa through 2030 Tampa Bay Times, retrieved 2021-10-27^
  5. FBI RAID SHUTTERS MEDICARE INSURER Tampa Bay Times, retrieved 2021-10-27^
  6. Centene to buy Tampa-based WellCare in $17B deal, creating powerhouse in Medicaid, Medicare and Obamacare Tampa Bay Times, retrieved 2021-10-27^
  7. First-every proxy tells of WellCare's healthy rewards www.bizjournals.com, retrieved 2021-10-27^
  8. Jacob Goldstein. WellCare CEO Resigns Wall Street Journal, 2008-01-25, retrieved 2021-10-27^
  9. Carolyn Pritchard. WellCare Group prices IPO of 7.3M shares at $17 each MarketWatch, June 30, 2004^
  10. How WellCare got so rich Tampa Bay Times, retrieved 2021-10-27^
  11. WellCare CEO Alec Cunningham outlines once-troubled company's 'cultural transformation' Tampa Bay Times, retrieved 2021-10-27^
  12. FBI, HHS raid WellCare headquarters Modern Healthcare, 2007-02-07, retrieved 2021-10-27^
  13. Carol Gentry, Mike Wells. Judge unseals whistle-blower complaint on WellCare Health Plans 28 June 2010^
  14. Ex-WellCare CEO Found Guilty in $40 Million Medicaid Scheme Bloomberg.com, 2013-06-11, retrieved 2021-10-27^
  15. Travis Reed. AP: In Medicaid reform, Fla. GOP saw rich benefit The Chicago Tribune, 14 February 2009^
  16. Vanessa Fuhrmans. WellCare Agrees to Pay $80 Million to Settle Medicaid Case Wall Street Journal, 2009-05-06, retrieved 2021-10-27^
  17. WellCare agrees to pay over $137.5 million in settlement Modern Healthcare, 2007-03-05, retrieved 2021-10-27^
  18. WellCare President and CEO Schiesser to resign Boston.com, retrieved 2021-10-27^
  19. Subsidized then scrutinized: Health care reform could deliver added examination of executive pay Crain's Detroit Business, 2010-08-16, retrieved 2021-10-27^
  20. 'Interim' CEO of WellCare shakes things up tampabay.com, 23 May 2014, retrieved 6 August 2018^
  21. See where these 5 Tamba Bay companies rank www.bizjournals.com, January 19, 2019, retrieved 2019-06-02^
  22. Four Tampa Bay companies ranked as world's "most admired" Tampa Bay Times, retrieved 2021-10-27^
  23. How the WellCare acquisition is driving Centene's approach to Medicare Advantage FierceHealthcare, October 8, 2020, retrieved 2021-10-27^
  24. WellCare CEO, CFO to join Centene's executive leadership team www.bizjournals.com, retrieved 2021-10-27^
  25. Centene announces C-suite change with new CFO www.bizjournals.com, retrieved 2021-10-27^
  26. WellCare completes Easy Choice acquisition Modern Healthcare, 2007-03-05, retrieved 2021-10-27^
  27. WellCare acquires UnitedHealth Group's South Carolina Medicaid business Modern Healthcare, 2007-02-07, retrieved 2021-10-27^
  28. Aetna selling Missouri Medicaid business STLtoday.com, January 22, 2013, retrieved 2021-10-27^
  29. Windsor Health deal gives WellCare customers in all 50 states Modern Healthcare, 2007-02-07, retrieved 2021-10-27^
  30. Margie Manning. WellCare wraps Windsor Health Group deal Tampa Bay Business Journal, 6 January 2014, retrieved 2025-01-06^
  31. WellCare completes purchase of Care1st Plan of Arizona Modern Healthcare, 2017-01-04, retrieved 2021-10-27^
  32. WellCare completes $800M acquisition of Universal American www.beckershospitalreview.com, May 2017, retrieved 2021-10-27^
  33. Aetna drug plan poised to be WellCare's latest high-profile acquisition Tampa Bay Times, retrieved 2021-10-27^
  34. Bruce Japsen. WellCare To Buy Meridian Health Plans And PBM For $2.5 Billion Forbes, retrieved 2018-09-28^
  35. WellCare's $2.5 billion purchase of Meridian makes it the Tampa Bay area's biggest company by market cap Tampa Bay Times, retrieved 2021-10-27^
  36. CVS-Aetna Merger Wins Antitrust Approval From Judge The New York Times, September 4, 2019, retrieved December 5, 2019^