WellCare Health Plans Inc. (WCG) will pay a civil penalty of $120,000 to resolve charges it made questionable campaign contributions from 2003 through 2007.
The managed care company said it voluntarily disclosed the contributions to the Florida Elections Commission, which found four WellCare units didn’t have a source of revenue independent of affiliate transfers and cash balances, and some of their contributions were for more than the legal limit.
“We are pleased this matter has been resolved,” Vice Chairman Thomas F. O’Neil III said. “Our voluntary disclosure to the commission demonstrates our enterprise-wide commitment to regulatory compliance, transparency, and accountability.” He added those responsible for the issues are no longer employed by the company.
WellCare also said there is no evidence the violations were intentional, and it halted contributions to Florida election campaigns in 2008.
Shares were off 1% to $24.65 in recent trading among a broader market rally but are up 91% so far this year.
-By Alexandra Scaggs, Dow Jones Newswires; 212-416-2673; alexandra.scaggs@ dowjones.com