WellCare decides to not continue its ABD Medicaid managed care contract

WellCare Health Plans Inc announced that it will not renew its managed care contract for aged, blind, and disabled Medicaid recipients in northeast Ohio (Source: "WellCare Health Plans gives up some Ohio business," Tampa Bay Business Journal, May 20, 2008).  Its contract ends on June 30th.

According to WellCare, it spent more on medical expenses than it received in revenue for the first quarter of 2008.  It had the same experience during 2007.

The Ohio Department of Job and Family Services does have a right to extend this contract for two additional months.  Therefore, WellCare may continue to serve this population until the end of August, depending on how Ohio's Medicaid program responds to this decision.

WellCare said that it would continue to provide its other Medicaid managed care population in northeast Ohio.  It also said that this action will also not affect its Medicare plan offerings in Ohio.