WellCare

WellCare Health Plans, Inc.

Company type	Subsidiary
Industry	Health insurance
Founded	1985
Founder	Kiran Patel (acquirer in 1992)
Headquarters	Tampa , United States
Area served	Nationwide (United States)
Key people	Kenneth Burdick (CEO at acquisition), Andrew Asher (CFO at acquisition)
Products	Medicaid, Medicare Advantage, Medicare Prescription Drug plans
Parent	Centene Corporation

WellCare Health Plans, Inc. operates as a U.S.-based health insurance provider, focusing primarily on managed care offerings through programs such as Medicaid, Medicare Advantage, and Medicare Prescription Drug plans nationwide.

Established in 1985 and with its main office located in Tampa, Florida, WellCare joined the portfolio of Centene Corporation in January 2020.

History

Initially, WellCare served as a Medicaid provider based in Florida. In 1992, the company was acquired by cardiologist and businessperson Kiran Patel. A decade later, in 2002, Patel sold the business to a New York investment consortium led by George Soros and Todd Farha, with Farha assuming the CEO role that same year.

WellCare made its public market debut in 2004 through an initial public offering on the New York Stock Exchange, offering 7.3 million shares at $17 apiece. Following the enactment of the Medicare Prescription Drug, Improvement, and Modernization Act in 2003, the company expanded its portfolio in 2006 to include Medicare Advantage plans featuring prescription drug coverage. That same year marked the introduction of its Medicare Part D offerings.

2007 Florida investigations

On October 24, 2007, authorities executed a search warrant at WellCare’s Tampa headquarters prompted by a whistleblower’s allegations that the company had overstated patient treatment expenses and neglected to reimburse overpayments to the state. Multiple staff members were implicated.

In 2011, criminal charges were brought by the SEC against four executives from WellCare, including former CEO Todd Farha. By 2013, convictions were secured for healthcare fraud and making false statements. To resolve these issues, WellCare agreed to pay $217.5 million between 2008 and 2012.

2008–2019

Heath Schiesser took over as president and CEO from Todd Farha in January 2008; subsequently, Alec Cunningham succeeded Schiesser in December 2009. In November 2013, David Gallitano, then Chairman, stepped in as interim CEO.

Reflecting its expansion and market stature, WellCare earned recognition from Fortune magazine as one of the World's Most Admired Companies for three consecutive years: 2018, 2019, and 2020.

Acquisition by Centene

In January 2020, WellCare was purchased by Centene Corporation for $17 billion. Following the merger, WellCare’s Chief Financial Officer, Andrew Asher, assumed the role of CFO at Centene, while CEO Kenneth Burdick joined Centene’s leadership team.

Acquisitions

WellCare broadened its market reach and diversified its product portfolio through a series of strategic acquisitions. In November 2012, it took over Easy Choice Health Plan based in California. Early in 2013, WellCare acquired UnitedHealthcare’s Medicaid operations in South Carolina as well as Aetna’s Medicaid business in Missouri, known as Missouri Care. The acquisition of Windsor Health Group in January 2014 enabled WellCare to establish a footprint across all 50 states.

In January 2017, WellCare expanded by acquiring Care1st Health Plan Arizona, an affiliate of Blue Shield of California. That same year, the company completed an $800 million purchase of Universal American and also acquired Phoenix Health Plan from Abrazo Community Health Network, a subsidiary of Tenet Healthcare.

The $2.5 billion acquisition of Meridian Health Plans in Detroit during September 2018 significantly enhanced WellCare’s financial strength and market position. In September 2019, WellCare further reinforced its Medicare Advantage offerings by acquiring Aetna’s Medicare prescription drug insurance business following CVS Health’s acquisition of Aetna.

See also

• EmblemHealth