WellCare raided by FBI

October 30, 2007

FBI searches headquarters of WellCare, a company that offers Medicare and Medicaid health plans.

The headquarters of WellCare Health Plans were raided recently by FBI agents. WellCare offers Medicaid health plans and has more than 900,000 beneficiaries enrolled in its Medicare Part D programs nationwide. In an audio statement, Todd S. Farha, the company's chairman and CEO, insisted that its services "are operational and will remain uninterrupted" and that it is cooperating with the investigation. Upon news of the raid, shares in the company dropped more than 70% and trading of the stock was briefly halted. No details about the reason for the raid have been released, but in June the company was one of five insurers to halt marketing of its Medicare Part D plans after accusations of unscrupulous tactics.

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