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WellCare acknowledges questionable campaign contributions

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Published: August 19, 2009

Health insurer WellCare Health Plans Inc. Wednesday acknowledged hundreds of what it called "questionable" campaign contributions to politicians in Florida from 2003 to 2007.

The company resolved a series of issues with the Florida Elections Commission by agreeing to pay a $120,000 civil penalty. It also agreed not to contest the commission's finding of probable cause that the contributions violated Florida state laws.

A previous Associated Press calculation found WellCare Health Plans Inc., its subsidiaries and executives spent $2.4 million on political contributions in the 2004 and 2006 elections.

More than 95 percent of it went to Republicans, who pushed forward a nationally watched plan that funnels more state and federal Medicaid spending than ever through private companies like WellCare.

This represents the latest in a string of settlements by WellCare to admit problems with business practices. The company has already acknowledged cheating Florida out of tens of millions of dollars for health care reimbursements, and the company is under investigation by a cadre of government agencies.

"Our voluntary disclosure to the commission demonstrates our enterprise-wide commitment to regulatory compliance, transparency, and accountability," said Thomas F. O'Neil III, WellCare's vice chairman. "Those responsible for these issues are no longer employed by the company."

The allegations involved four WellCare subsidiaries, which made contributions that exceeded legal limits. The company said there is no evidence that the violations were intentional, or that any subsidiary was created or maintained for the purpose of making contributions.

WellCare said it suspended its contributions to Florida election campaigns during the second quarter of 2008.

Tampa-based WellCare is one of the nation's largest providers of managed care services for government-sponsored health care programs, serving about 2.4 million clients nationwide.

Tribune reporter Richard Mullins contributed to this report.

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