WellCare

WellCare is an American health insurance and managed-care brand that provides coverage and related services primarily through government-sponsored programs. Its principal lines have included Medicaid, Medicare Advantage, and Medicare Part D prescription drug plans. The business began operations in Tampa, Florida, in 1985 as a Medicaid provider serving the State of Florida, establishing a long-term focus on publicly financed health coverage rather than conventional employer-sponsored insurance. The company changed ownership several times as it expanded. Cardiologist and entrepreneur Kiran Patel purchased WellCare in 1992. In 2002, Patel sold the company to a New York investment group led by George Soros and Todd Farha; Farha became chief executive that year. WellCare subsequently pursued public-market growth and completed an initial public offering in 2004, listing on the New York Stock Exchange. The company broadened beyond Medicaid after the creation of the Medicare Part D framework and began offering Medicare Advantage plans with prescription-drug benefits in 2006. It also entered Medicare Part D as a standalone product line that year. During the 2010s, WellCare expanded its geographic reach and government-program capabilities through acquisitions and portfolio transactions. These included Easy Choice Health Plan in California, UnitedHealthcare's South Carolina Medicaid business, Missouri Care, Windsor Health Group, Care1st Health Plan Arizona, Universal American, Phoenix Health Plan, Meridian Health Plans, and Aetna's Medicare prescription insurance business. The transactions added Medicaid, Medicare Advantage, prescription-drug, and regional-plan assets across multiple states. WellCare also experienced a major legal and governance crisis. In 2007, federal agents searched its Tampa headquarters following a whistleblower complaint alleging that the company had overstated patient-treatment costs and failed to return certain state overpayments. The matter led to criminal charges against four executives in 2011. In 2013, executives including former chief executive Todd Farha were found guilty of healthcare fraud and making false statements to law enforcement. Between 2008 and 2012, the company agreed to pay $217.5 million to settle related claims, according to the cited reference material. Leadership changed repeatedly after the investigation. Heath Schiesser became president and chief executive in 2008, Alec Cunningham replaced him in 2009, and chairman David Gallitano served as interim chief executive in 2013. WellCare was recognized by Fortune among the World's Most Admired Companies in 2018, 2019, and 2020. In January 2020, Centene Corporation acquired WellCare in a transaction valued at approximately $17 billion. WellCare thereafter operated as a Centene subsidiary and brand. Its former chief financial officer Andrew Asher became Centene's CFO, while chief executive Kenneth Burdick joined Centene's executive team. The brand remains associated with government-sponsored health plans, particularly Medicaid, Medicare Advantage, and prescription-drug coverage.

WellCare began operations in 1985 in Tampa, Florida, as a Medicaid provider for the State of Florida. Its initial business model was therefore tied directly to publicly funded healthcare and managed care. In 1992, cardiologist and entrepreneur Kiran Patel purchased the company. A decade later, Patel sold WellCare to a New York investment group led by George Soros and Todd Farha. Farha became chief executive in 2002, during a period in which WellCare was developing from a regional Medicaid operator into a broader government-program insurer. WellCare became a public company through an initial public offering in 2004. Its shares began trading on the New York Stock Exchange after the company sold 7.3 million shares at $17 per share. The company subsequently extended its government-program portfolio. Following the development of the Medicare prescription-drug framework, WellCare began offering Medicare Advantage plans with prescription-drug benefits in 2006 and also entered Medicare Part D. The company faced a serious compliance and legal crisis in Florida in 2007. Federal agents searched its Tampa headquarters after a whistleblower complaint alleged that WellCare had inflated patient-treatment costs and failed to return overpayments to the state. The allegations implicated employees who were said to have known about the practices. In 2011, criminal charges were brought against four executives. In 2013, the executives, including former chief executive Todd Farha, were found guilty of healthcare fraud and making false statements to law enforcement. The company agreed to pay $217.5 million between 2008 and 2012 to settle related claims. Leadership changed during and after this period. Heath Schiesser was promoted to president and chief executive in January 2008, replacing Farha. Alec Cunningham replaced Schiesser in December 2009. In November 2013, chairman David Gallitano became interim chief executive. While rebuilding and expanding its business, WellCare completed a series of acquisitions. It bought Easy Choice Health Plan in California in 2012, UnitedHealthcare's South Carolina Medicaid business and Missouri Care in 2013, and Windsor Health Group in 2014. In 2017, it acquired Care1st Health Plan Arizona, Universal American, and Phoenix Health Plan. Meridian Health Plans was acquired in 2018. In 2019, WellCare acquired Aetna's Medicare prescription insurance business as a condition associated with CVS Health's acquisition of Aetna. Fortune named WellCare among the World's Most Admired Companies in 2018, 2019, and 2020. In January 2020, Centene Corporation acquired the company in a transaction valued at approximately $17 billion. After the merger, WellCare's chief financial officer Andrew Asher became Centene's chief financial officer, and chief executive Kenneth Burdick joined Centene's executive team. WellCare continued as a Centene subsidiary and brand, retaining its association with Medicaid, Medicare Advantage, Medicare Part D, and managed-care services.

1. 2020Centene acquisition

   Centene Corporation acquires WellCare for approximately $17 billion, after which WellCare operates as a Centene subsidiary and brand.

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2. 2019Acquisition of Aetna Medicare prescription business

   WellCare acquires Aetna's Medicare prescription insurance business as a condition of CVS Health's acquisition of Aetna.

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3. 2018Fortune recognition

   WellCare is named among Fortune's World's Most Admired Companies.

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4. 2017Expansion through three acquisitions

   WellCare acquires Care1st Health Plan Arizona, Universal American, and Phoenix Health Plan.

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5. 2012Acquisition of Easy Choice Health Plan

   WellCare acquires Easy Choice Health Plan in California.

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6. 2007Federal search of Tampa headquarters

   Federal agents search WellCare's headquarters following a whistleblower complaint concerning alleged treatment-cost inflation and state overpayments.

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7. 2006Expansion into Medicare products

   WellCare begins offering Medicare Advantage plans with prescription-drug benefits and Medicare Part D plans.

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8. 2004Initial public offering

   WellCare becomes publicly traded on the New York Stock Exchange through an offering of 7.3 million shares priced at $17 each.

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9. 2002Ownership changes and Farha becomes CEO

   Patel sells WellCare to an investment group led by George Soros and Todd Farha; Farha becomes chief executive.

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10. 1992Kiran Patel purchases WellCare

    Cardiologist and entrepreneur Kiran Patel acquires the company.

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11. 1985WellCare begins operations

    WellCare begins operating in Tampa as a Medicaid provider for the State of Florida.

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A managed-care and health-insurance provider centered on Medicaid, Medicare Advantage, and other government-sponsored coverage programs.

• Medicaid plansGovernment-sponsored health insurance1985

  Medicaid was WellCare's original area of operation and remained a core part of its business. The company provides managed-care coverage and related administration for eligible low-income populations under state and federally supported Medicaid programs. Its Medicaid activities expanded beyond Florida through regional acquisitions and contracts.

• Medicare Advantage plansMedicare managed care2006

  WellCare offers Medicare Advantage coverage for eligible Medicare beneficiaries through privately administered plans. The offering was introduced in 2006 and has included plans combining medical coverage with prescription-drug benefits. The business expanded through internal growth and acquisitions of Medicare-focused assets.

• Medicare Part D plansPrescription drug insurance2006

  The company entered Medicare Part D, the federal prescription-drug insurance program, in 2006. This product line complements Medicare Advantage offerings that include drug benefits and was later enlarged through the acquisition of Aetna's Medicare prescription insurance business in 2019.

• Managed-care servicesHealthcare administration1985

  WellCare's broader managed-care activities organize and administer government-sponsored health benefits through contracted plans and regional operations. These services support Medicaid, Medicare Advantage, and prescription-drug coverage and form the operating foundation of the brand.

• 2020Sale to CenteneM&A

  WellCare pursued a combination with another large government-sponsored health-plan operator.

  What changed. Centene Corporation acquired WellCare and incorporated its operations into the Centene group.

  Aftermath. WellCare ceased to be an independent public company and continued as a Centene subsidiary and brand. Andrew Asher became Centene's CFO, and Kenneth Burdick joined Centene's executive team.

  Acquisition value. Approximately $17 billion (January 2020)

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• 2019Acquisition of Aetna's Medicare prescription insurance businessM&A

  CVS Health's acquisition of Aetna required the divestiture of certain Medicare prescription insurance assets.

  What changed. WellCare acquired Aetna's Medicare prescription insurance business.

  Aftermath. The transaction expanded WellCare's Medicare prescription-drug operations.

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• 2006Launch of Medicare Advantage and Part D offeringsProduct launch

  WellCare expanded from its Medicaid base as Medicare prescription-drug coverage became a larger opportunity following federal legislation.

  What changed. The company began offering Medicare Advantage plans with prescription-drug benefits and Medicare Part D plans.

  Aftermath. Medicare and prescription-drug products became important components of WellCare's government-program portfolio.

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• 2004Public-market listingStrategy

  WellCare sought public-market access as it expanded beyond its Florida Medicaid origins.

  What changed. The company completed an initial public offering and listed on the New York Stock Exchange.

  Aftermath. The listing provided a public-company structure before the company was later acquired by Centene.

  Initial public offering. 7.3 million shares offered at $17 per share (2004)

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• 2013Executive healthcare-fraud convictionsControversy

  Four WellCare executives, including former chief executive Todd Farha, were found guilty of healthcare fraud and making false statements to law enforcement. The company agreed to pay $217.5 million between 2008 and 2012 to settle related claims.

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• 2007Florida treatment-cost and overpayment investigationControversy

  A whistleblower complaint alleged that WellCare inflated patients' treatment costs and failed to return overpayments to the State of Florida. Federal agents searched the company's Tampa headquarters on October 24, 2007. The investigation later resulted in criminal charges and convictions involving executives.

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• 2020Centene completes acquisition of WellCare

  Centene Corporation acquired WellCare, bringing the insurer's Medicaid, Medicare, and prescription-drug operations into the Centene group.

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1. WellCare