WellCare Health Plans gives up some Ohio business
20 05 08 - 16:43
WellCare Health Plans Inc. said it has decided against renewing a contract to provide managed health care services to some Mediciaid recipients in Ohio.
The company said in a filing with the Securities and Exchange Commission that the contract to provide services to the aged, blind and disabled population in northeast Ohio expires on June 30, although the Ohio Department of Jobs and Family Services has the right to extend the agreement for up to two months.
WellCare said the costs associated with the non-renewal would be insignificant. For the first quarter of 2008, WellCare spent more on medical expenses than it took in revenue, according to the filing. The company received $27.9 million in revenue for the quarter ended March 31, but medical expenses were $33 million. The 2007, revenue from the contract was $101.4 million and medical expenses were $91.6 million, according to the contract.
WellCare (NYSE: WCG), a Tampa company that provides managed care services for government-sponsored health care plans, said it would continue to provide other Medicaid services in northeast Ohio. WellCare's Medicare programs in Ohio are not affected, the filing said.