WellCare Health Plans Inc. has agreed to pay $137.5 million and interest to settle an inquiry by the Department of Justice arising from whistleblower allegations of overpayments and fraud.

The health care provider, based in Tampa, announced that it has reached a preliminary agreement with the civil divisions of the Department of Justice, the United States Attorney’s Office for the Middle District of Florida, and the United States Attorney’s Office for Connecticut. The settlement is payable over thirty-six months. The settlement also stipulates that, in the event of a change of control at the company, WellCare would be required to pay an additional $36 million and accelerate the full settlement.

Of the $137.5 million settlement, the Florida Agency for Health Care Administration will receive $23 million for overpayments it made to WellCare during a three-month period in 2005.

The Qui Tam attorneys of Tycko & Zavareei LLP are experienced in healthcare fraud investigations and litigation, and are here to help you with a free, confidential, initial consultation. Contact us at 202-973-0900 today.