10-25-2007, 12:41 AM
Federal authorities searched the headquarters of Florida's largest provider of managed health care for the poor Wednesday and trading of its stock was suspended, but nobody would say why the company is being targeted.
FBI agents along with various other federal law enforcement personnel - including from the attorney general's Medicaid Fraud Control Unit - raided the offices of WellCare Health Plans Inc. Authorities said the raid will not affect the 350,000 poor Floridians who receive Medicaid through the Tampa-based company.
"The ongoing investigation does not directly concern, nor should it have any impact upon, the delivery of any health care service to any person," the U.S. Attorney's Office said in a statement.
Trading in WellCare stock on the New York Stock Exchange was halted at 10:59 a.m., about 90 minutes after the market opened, after it had fallen $5.47 a share or 4.5 percent to $115.50.
The company acknowledged the search and said it is cooperating with authorities.
"Our No. 1 priority is making sure that our members have access to needed care and services," the company said in a statement. "Our essential services are operational and will remain uninterrupted."
A spokeswoman said WellCare would have no further comment.
Andrew Agwunobi, secretary of the Florida Agency for Health Care Administration, which administers the state's $16.6 billion Medicaid program, said he is "deeply concerned."
"Our highest priority is to ensure that there is no disruption of services to the citizens who are served by these companies," Agwunobi said. "We have been in communication with Wellcare officials (Wednesday) and they have indicated that there will be no effect on beneficiaries. We will continue to monitor this situation closely and respond appropriately if necessary."
WellCare's Web site describes it as a leading provider of managed care services dedicated to government-sponsored health care programs focusing on Medicaid and Medicare plans, including health plans for families, children, the blind and disabled, and prescription drug plans. It has 2.3 million members nationwide.
WellCare was among seven companies that in June agreed to suspend marketing until measures could be put into place to protect people from aggressive and misleading tactics reportedly used by some of their sales representatives.
FBI agents along with various other federal law enforcement personnel - including from the attorney general's Medicaid Fraud Control Unit - raided the offices of WellCare Health Plans Inc. Authorities said the raid will not affect the 350,000 poor Floridians who receive Medicaid through the Tampa-based company.
"The ongoing investigation does not directly concern, nor should it have any impact upon, the delivery of any health care service to any person," the U.S. Attorney's Office said in a statement.
Trading in WellCare stock on the New York Stock Exchange was halted at 10:59 a.m., about 90 minutes after the market opened, after it had fallen $5.47 a share or 4.5 percent to $115.50.
The company acknowledged the search and said it is cooperating with authorities.
"Our No. 1 priority is making sure that our members have access to needed care and services," the company said in a statement. "Our essential services are operational and will remain uninterrupted."
A spokeswoman said WellCare would have no further comment.
Andrew Agwunobi, secretary of the Florida Agency for Health Care Administration, which administers the state's $16.6 billion Medicaid program, said he is "deeply concerned."
"Our highest priority is to ensure that there is no disruption of services to the citizens who are served by these companies," Agwunobi said. "We have been in communication with Wellcare officials (Wednesday) and they have indicated that there will be no effect on beneficiaries. We will continue to monitor this situation closely and respond appropriately if necessary."
WellCare's Web site describes it as a leading provider of managed care services dedicated to government-sponsored health care programs focusing on Medicaid and Medicare plans, including health plans for families, children, the blind and disabled, and prescription drug plans. It has 2.3 million members nationwide.
WellCare was among seven companies that in June agreed to suspend marketing until measures could be put into place to protect people from aggressive and misleading tactics reportedly used by some of their sales representatives.