DOW JONES NEWSWIRES
WellCare Health Plans Inc. (WCG) will pay a civil penalty of
$120,000 to resolve charges it made questionable campaign
contributions from 2003 through 2007.
The managed care company said it voluntarily disclosed the
contributions to the Florida Elections Commission, which found four
WellCare units didn't have a source of revenue independent of
affiliate transfers and cash balances, and some of their
contributions were for more than the legal limit.
"We are pleased this matter has been resolved," Vice Chairman
Thomas F. O'Neil III said. "Our voluntary disclosure to the
commission demonstrates our enterprise-wide commitment to
regulatory compliance, transparency, and accountability." He added
those responsible for the issues are no longer employed by the
company.
WellCare also said there is no evidence the violations were
intentional, and it halted contributions to Florida election
campaigns in 2008.
Shares were off 1% to $24.65 in recent trading among a broader
market rally but are up 91% so far this year.
-By Alexandra Scaggs, Dow Jones Newswires; 212-416-2673;
alexandra.scaggs@dowjones.com