WellCare chief plans to resign

The president and CEO of WellCare Health Plans Inc. will resign, the company said Monday.

The Tampa-based company is one of the nation's largest private administrators of Medicare and Medicaid plans on behalf of governments.

Heath Schiesser will step down after the appointment of a new president and CEO as the company orchestrates a transitional leadership plan. He will continue to serve in his role until then, and the company said it will reaffirm his re-election nomination as a director of the board.

He took over WellCare in January 2008 after two other executives and his predecessor left amid a raft of federal probes and a raid of the company's headquarters by the Federal Bureau of Investigation.

Schiesser had moved to resolve several of those investigations.

In May, WellCare agreed to pay $90 million to settle U.S. and Florida claims that it artificially boosted profits from 2004-07 by short-changing $40 million from the Florida Agency for Health Care Administration and the Florida Healthy Kids Corporation.

Federal law enforcement officials say they plan personal charges against some former executives.

Medicare officials have barred the company from signing up new participants citing - among other problems - a worst-in-the nation record for handling urgent complaints.

WellCare's employment is dropping as well; the company cut 360 workers in May, bringing local employment to 2,400.

WellCare's board will now look for a replacement for Schiesser

"I am proud of all that the WellCare team has accomplished since January 2008," Schiesser said in a statement. "After a tremendous effort across the Company, we are now current in our SEC and state regulatory filings; we have resolved a number of enforcement and regulatory investigations; and we have implemented several difficult, but necessary, strategic and organizational initiatives to position our business for the future."

WellCare's executive chairman Charles G. Berg said Schiesser "has provided invaluable leadership during a challenging period, and he continues to have our full support."

Stock in WellCare fell 40 cents per share to close at $18.84 Monday.