Attorney General: Attorney Generalís Statement On Wellcare Investigation

Connecticut Attorney General's Office

Press Release

Attorney General's Statement On Wellcare Investigation

October 26, 2007

Attorney General Richard Blumenthal, responding to public inquiries about a federal investigation and raid at WellCare Health Plans, Inc., confirmed that his office has been conducting a months-long investigation into an affiliate company, WellCare of Connecticut, Inc.

WellCare is one of four managed care companies that administers the state's Medicaid program, including the Husky program for children.

"My office is investigating transactions between WellCare and its affiliate companies - and their potential impact on the costs of our state's Medicaid program. Our interest began after receiving a whistleblower complaint - as well as public reports by Wall Street analysts alleging that WellCare was hiding and misreporting profits earned through its Medicaid programs.

"Our state relies on factual reporting of company profits in order to properly and fairly set rates for our Medicaid program - and adequately ensure care for our state's most vulnerable citizens, particularly children. Our investigation, separate and unrelated to the federal and Florida state investigation and raid announced earlier this week, is continuing vigorously and aggressively. WellCare has so far fully and voluntarily cooperated with our investigation."