Insurer WellCare Reports Increased Membership As Medicaid Rolls Grow
In its quarterly report, the company said it also beat profit estimates but told investors it faces challenges next year. Meanwhile, six former officials have filed a suit alleging that the company improperly kept money that should have been repaid to Medicare and Medicaid.
Modern Healthcare:
WellCare's Net Income Drops, But Membership Grows
WellCare Health Plans, a private Medicare and Medicaid managed-care company, beat analysts' adjusted profit estimates in the third quarter. But the insurer revealed it will continue to face challenges next year. Net income declined 70% to $19.3 million, while revenue in the quarter soared 36% to $3.4 billion. New members fueled the top-line growth, as WellCare's enrollment grew 43% to more than 4 million people. Much of that came on the Medicaid side, which represents almost two-thirds of WellCare's business. (Herman, 11/5)
Reuters:
WellCare Health Profit Beats As Membership Rises 43 Percent
U.S. health insurer WellCare Health Plans Inc (WCG.N) reported a better-than-expected adjusted profit for the third quarter, driven by a 43 percent increase in memberships under Obamacare. Members under the Medicaid health plans increased 28 percent to 2.3 million in the quarter ended Sept. 30, driven by additions in Florida, Kentucky and Georgia under the federal health insurance program for lower-income people, Wellcare said. (Penumudi, 11/5)
Georgia Health News:
Suit Claims WellCare Improperly Pocketed Funds
Six former WellCare officials are suing the Tampa-based company over health care fraud allegations related to its services in Georgia and other states. The six claim that WellCare improperly kept money that should have been paid to hospitals or been repaid to Medicare or state Medicaid programs in Florida, Georgia, Illinois, New York, Ohio, Kentucky and Missouri. (Miller, 11/5)