WellCare Health Plans Inc. will pay $137.5 million to settle a whistleblower lawsuit. This will resolve investigations by the U.S. Justice Department and the states of Florida and Connecticut. The health insurer, which was sued over accusations that it had been overcharging for its Medicare and Medicaid programs, will pay the $137.5 million plus interest over a period of 36 months. The company said that the settlement won’t have a material impact on 2012 financial results. Settlement of the civil action was held up when a whistleblower objected to the settlement. The objection was withdrawn last month and the whistleblower signed off on the federal settlement, making the resolution effective on March 23rd.
Source: Insurance Journal
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