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Tuesday, October 30, 2007

SEC Joins WellCare Probe, Requests Information After FBI Raid

WellCare is under investigation for Medicare fraud by the FBI. The FBI is seeking information about doctors bills and hospital bills for their Medicare programs. Fraud in Medicare is one of the problems with this system. It adds costs to the system that can not be recovered. Now the SEC is looking at WellCare's activity as well. This is part of the problem of a for-profit system of health insurance. Insurance companies that look for ways to make as much money as possible will not be interested in saving money for the system. Enjoy the article.

October 29, 2007 (FinancialWire)
The Securities and Exchange Commission has requested information from WellCare Health Plans Inc. (NYSE: WCG), which manages health care for more than a million poor Americans, after the FBI raided the company s Florida headquarters. The company and two top executives were sued by shareholder, Eastwood Enterprises LLC, which has alleged that the company disseminated materially false and misleading statements and concealed adverse facts. Eastwood Enterprises LLC is seeking class action status, covering buyers of WellCare stock between May 8, 2006 and October 24, 2007, according to the complaint.

Continue reading the article here.

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