WellCare requested the Iowa Department of Human Services "maintain the status quo" while a district judge reviews a state arbiter's decision to toss out WellCare's contract bid for Medicaid patients, according to the Sioux City Journal.
Janet Phipps, director of Iowa's department of administrative services, recommended WellCare's bid be terminated after the company allegedly failed to disclose a corporate integrity agreement revealing a $137.5 million settlement to resolve false claims litigation.
Already, 125,00 Iowans have been assigned to receive managed care services from the Tampa, Fl.-based insurer.
WellCare maintains it "fully disclosed and described in great detail" the settlement payment and corporate integrity agreement in question. The company plans to seek an immediate injunction in Polk County District Court, according to the article.