Prosecutors accused WellCare of submitting "fraudulently inflated expenditure information" to Medicaid and Florida Healthy Kids Corp., which cost the programs around $40 million, according to the report.
Under the agreement with the U.S. Attorney's Office in Tampa, WellCare agreed to a civil forfeiture of $40 million and an additional $40 million in restitution to Medicaid and Healthy Kids. The company said that $35.2 million of the settlement was paid in Aug. 2008, $25 million is to be paid within five business days of the agreement and the remaining $19.8 million before Dec. 31, according to the report.
In addition, WellCare agreed to implement updated reporting policies, institute corporate financing governance programs and retain and pay an independent monitor to ensure compliance.
The settlement only applies to WellCare prosecution in Florida. Other state investigations are ongoing.
Read Forbes' report on the WellCare settlement.