Tampa's WellCare released from sanctions, will soon market Medicare plans

Federal officials released WellCare Health Plans from sanctions late Tuesday, allowing the Tampa managed-care company to resume selling health plans during the critical enrollment season that begins in 10 days.

WellCare will start marketing its Medicare prescription drug plans and Medicare Advantage coordinated-care plans in the coming days. The company can begin enrolling customers Nov. 15 for coverage effective Jan. 1.

The Centers for Medicare & Medicaid Services notified WellCare of the sanctions in February, citing "a long-standing and persistent failure" to comply with rules for Medicare prescription drug contracts, including how it dealt with complaints and sold plans to customers. WellCare stopped selling prescription drug and Medicare Advantage plans March 7.

In a letter Tuesday, the agency wrote that WellCare has addressed problems that were the basis of sanctions. The agency will continue increased observation of the company during the open-enrollment period that runs from Nov. 15 to Dec. 31.

The agency sends representatives, sometimes posing as customers, to observe how agents sell plans at company-sponsored events.

On Wednesday, WellCare reported higher-than-expected third-quarter earnings, swinging to a profit of $28.7 million, or 68 cents per share, from a year-earlier loss of $18.2 million, or 44 cents a share.

The company also boosted the low end of expected earnings for 2009 from $2.90 to $2.95 per share. Previous guidance was for earnings per share from $2.75 to $2.95.

WellCare shares closed Wednesday at $28.09, up $1.77, or 6.7 percent.

Steve Huettel can be reached at huettel@sptimes.com or (813) 226-3384.