TAMPA, Fla. - (Business Wire) WellCare Health Plans, Inc. (NYSE: WCG) today announced that the Centers for Medicare & Medicaid Services (“CMS”) released the Company from the previously disclosed sanctions, except as noted below. The Company will resume marketing its Medicare Prescription Drug Plans and Medicare Advantage coordinated care plans over the coming days. The enrollments will be effective beginning January 1, 2010. The Company intends to reinitiate marketing over the next several months in a measured fashion and has been notified by CMS that it will be subject to heightened regulatory monitoring during the upcoming open enrollment periods. “We are pleased that CMS has recognized the significant improvements we have made across the Company,” said Heath Schiesser, WellCare’s president and chief executive officer. “Providing Medicare beneficiaries access to quality health care and ensuring the satisfaction of the members, providers and government clients we serve are top priorities for WellCare.”
As previously disclosed, the Company is not renewing its contracts with CMS for Medicare Advantage private fee-for-service plans in 2010. In addition, the Company is also not renewing its Medicare Advantage preferred provider organization contract in Ohio in 2010. The sanctions on marketing and enrollment for these plans will not be lifted prior to their planned termination at the conclusion of 2009.
About WellCare Health Plans, Inc.
WellCare Health Plans, Inc. provides managed care services exclusively for government-sponsored health care programs, focusing on Medicaid and Medicare. Headquartered in Tampa, Florida, WellCare offers a variety of health plans for families, children, and the aged, blind, and disabled, as well as prescription drug plans. The Company served approximately 2.3 million members nationwide as of September 30, 2009. For more information about WellCare, please visit the Company’s website at www.wellcare.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains “forward-looking” statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause WellCare’s actual future results to differ materially from those projected or contemplated in the forward-looking statements. These risks and uncertainties include, but are not limited to, WellCare’s current projected financial outlook for 2009, progress toward key initiatives such as increased reliability of the Company’s data and reporting and the management of costs and compliance with the requirements of CMS.
Additional information concerning these and other important risks and uncertainties can be found under the captions “Cautionary Statement Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s 2008 Annual Report on Form 10-K, as amended, and other filings made with the U.S. Securities and Exchange Commission, which contain discussions of WellCare’s business and the various factors that may affect it. WellCare undertakes no duty to update these forward-looking statements to reflect any future events, developments, or otherwise.
WellCare Health Plans, Inc.
Investor Relations:
Gregg Haddad, 813-865-1284
gregg.haddad@wellcare.com
or
Media Relations:
Amy Knapp, 813-290-6208
amy.knapp@wellcare.com
