WellCare Ordered to Halt Enrollment in Medicare Plans

Bloomberg News reports:

WellCare Health Plans Inc. became the second managed care provider this year ordered by the government to stop enrolling new customers in Medicare-backed drug and medical plans.

The Tampa, Florida, company was notified today of its suspension in a letter sent by the Centers for Medicare & Medicaid Services, according to the agency. The sanction takes effect on March 7 and won’t be lifted until the company satisfies regulators that operations and marketing have improved, according to the letter.

The disciplinary action for providing deficiency service to elderly and disabled customers was the second this year by the agency that operates the health program for the elderly and disabled. On Jan. 12, Medicare barred WellPoint Inc., the second- largest U.S. health insurer by revenue, from signing up new Medicare customers because it allegedly denied prescriptions to some and overcharged others.

“WellCare’s performance was substandard in numerous areas, and WellCare was one of the overall worst performers among all plans,” said Abby Block, Medicare’s chief of private plans, in the letter. “WellCare’s complaints are three times the national average.”

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