FBI raid shutters Medicare insurer (WellCare - formerly owned by George Soros)

St. Petersburg Times ^ | 10/25/07 | Kris Hundley

[wagglebee]

For the past two years, analysts have been asking how fast-growing WellCare Health Plans of Tampa has been able to make so much money running government health plans for the poor and elderly. Now government investigators may be asking the same thing.

On a rainy Wednesday morning, more than 200 federal and state agents swarmed WellCare's campus on Henderson Road in Tampa, forcing employees onto the sidewalk and into their cars.

Steven Meitzen, 51, who arrived at WellCare about 9:40 a.m. for a job interview, said he was initially told it was a bomb scare. "Later on, I talked to someone who said the FBI had a subpoena and were looking for records," he said.

By midday, the complex's parking garages were half-empty, but federal agents remained busy. They were still milling around WellCare's buildings in the early evening; a Ryder truck was backed up to a loading dock.

The U.S. Attorney's Office in Tampa said little about the search, which involved personnel from the Federal Bureau of Investigation, U.S. Department of Health and Human Services and the Florida attorney general's Medicaid Fraud Control Unit. The search warrant is sealed.

Both federal and state officials, however, said that the investigation should have no impact on delivery of health care to the more than 2.3-million members of WellCare's managed care plans.

The company's customers are about evenly divided between Medicare and Medicaid plans. WellCare is the largest Medicaid provider in Florida, with more than 350,000 members. The company also offers Medicare Advantage plans to seniors in seven states and a stand-alone drug plan nationwide.

The timing of the raid could be detrimental as WellCare is in the midst of convincing seniors to sign up for its 2008 plans.

WellCare issued a release saying that it was cooperating with authorities and that essential services to members would remain uninterrupted. Though its customer service number was working Wednesday, WellCare's Web site was replaced with a notice saying, "We're sorry, but something went wrong. We've been notified about this issue and we'll take a look at it shortly."

The company, which went public in July 2004 at $17 a share, has had a meteoric rise, with its stock more than doubling in the past 12 months. On Wednesday, WellCare's shares dropped $6.77 or 5.5 percent, to $115.50 before trading was halted about 11 a.m. It ended the day down $7.10 at $115.17.

FTN Midwest analyst Peter Costa downgraded his rating on WellCare stock to "sell" from "neutral" on Wednesday, citing the search. Costa said the investigation appeared to be a criminal one.

"Criminal investigations are harder to prove, likely to be more company specific and carry stiffer penalties, including being barred from doing business with the government if it is for fraud, which it most likely is given the departments involved," Costa said in a research note.

Thomas Carroll, analyst with Stifel Nicolaus in Baltimore, called the raid "ominous" and downgraded WellCare shares to "sell" from "hold" in a note to clients. Contacts within the company said BlackBerries, computers and files were seized from corporate, marketing and human resources offices, according to Carroll.

Carroll suspects the raid is potentially the result of a lawsuit in which an employee brought a matter to the attention of authorities.

"When the FBI and HHS raid a health care company, the outlook on earnings, legal proceedings and the entire operations of the company can be questioned," Carroll said.

WellCare's business practices have come under increased criticism over the past several months. Last spring, the company said independent sales agents in Georgia enrolled dead people in Medicare plans. In May and June, WellCare representatives appeared along with other insurance executives at hearings in the Senate and House into aggressive Medicare marketing practices. WellCare and six other insurers subsequently agreed to a temporary halt in marketing one type of Medicare plan, while promising to initiate consumer safeguards. In August, however, Medicare cited WellCare once again for violating several provisions of its Medicare contract, including sales practices.

WellCare, which had earnings of $139.2-million in 2006, gets all of its nearly $4-billion in revenues from state or federal governments. Profits come from the difference between the amount received from the government and the amount spent on overhead and medical care for its members.

The company routinely has outperformed its competition; for the quarter ending in June, the company said just 80.8 percent of its revenue was spent on medical claims, down from 82.7 percent a year ago.

WellCare's high margins have had analysts scratching their heads. In April, two Wall Street analysts said Florida in particular was too generous in its Medicaid reimbursement to WellCare. The analysts, with CIBC World Markets and Goldman Sachs & Co., were particularly critical of WellCare's use of a subsidiary in the Cayman Islands for reinsurance, saying it allowed the company to shift money in the form of reinsurance premiums.

WellCare said its reinsurance arrangement had been approved by stateregulators and rejected claims it was overpaid.

Florida Medicaid payments were raised 7.5 percent in July, to an average of $215 per member per month. Cuts of about 1.5 percent could be on the way in January, however, if Gov. Charlie Crist approves recommendations made during the recent special legislative session.

Medicare reimbursements average about $800 per member per month and will increase 3.5 percent next year. Because the federal government wanted to encourage private insurers to offer Medicare plans, it pays about 12 percent more for seniors on private plans than it does for traditional Medicare.

WellCare was a slow-growing Florida company until 1992 when its owner, Dr. Kiran Patel, sold it to a New York investment group led by financier George Soros. The bankers hired Todd Farha, an aggressive Harvard MBA, to transform the company. Under his leadership, WellCare's earnings have increased eight-fold and the company's investors and executives like Farha have profited handsomely from appreciation in its stock.

In an interview last year, Farha credited WellCare's success with hard work, attractive member benefits and close attention to the basics. But he has also nurtured the kinds of relationships invaluable to a company dependent on government funding.

WellCare and its affiliates have given the Republican Party of Florida some $105,000 in contributions this year, according to state election records. They've also given the Florida Democratic Party $5,000 this year. In 2006, WellCare's PAC gave $66,000 to federal candidates, all Republicans.

And the company's board has included the head of the Florida agency that oversees Medicaid, Dr. Andrew Agwunobi. Agwunobi was a director for six months before being picked to head the Agency for Health Care Administration. For his six months service on WellCare's board, Agwunobi received stock, which he sold for more than $1-million.

Current WellCare board members include former Florida Sen. Bob Graham and Ruben King-Shaw, former head of Florida's health agency and an ex-deputy chief at Medicare.

[8mmMauser]

Is it U of D or DU? I get that so confused. Wow they are really progressive, beyond the dreams of the darkest on the left! Thread by wagglebee.

FIRE Press Release NEWARK, Del., October 30, 2007—The University of Delaware subjects students in its residence halls to a shocking program of ideological reeducation that is referred to in the university’s own materials as a “treatment” for students’ incorrect attitudes and beliefs. The Orwellian program requires the approximately 7,000 students in Delaware’s residence halls to adopt highly specific university-approved views on issues ranging from politics to race, sexuality, sociology, moral philosophy, and environmentalism. The Foundation for Individual Rights in Education (FIRE) is calling for the total dismantling of the program, which is a flagrant violation of students’ rights to freedom of conscience and freedom from compelled speech.

University of Delaware Requires Students to Undergo Ideological Reeducation

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Excuse me, Wuli! Excuse me, narses! Credits where credits are due... I got so excited this morning I scrambled the keyboard. Thread above by Wuli and ping by narses.

Gulp....

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[8mmMauser]

This thread by 3angelaD is about the movie Bella we mentioned earlier. I heard Laura Ingraham interview the star. Refreshing indeed! Thanks, narses, for the ping.

Hollywood, CA -- Bella, the pro-life themed movie that has the potential to change hearts and minds on abortion, opened solidly with $1.3 million over the weekend in a limited release in just 31 cities. Though other movies achieved higher gross sales, they needed significantly more theaters to do so. The film stars Eduardo Verastegui as a former soccer player who learns the value of human life and helps a pregnant waitress, played by Tammy Blanchard, appreciate the value of the baby she's carrying.

Bella Sees Strong Sales on Opening Weekend, 2nd Highest Per Theater

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Holy Double Cross!

Thread by wagglebee.

WORCHESTER, Massachusetts, September 28, 2007 (LifeSiteNews.com) - Jesuit-run Holy Cross, the oldest Catholic college in New England, is hosting the 2007 Teen Pregnancy Institute with Planned Parenthood promoting teenage contraception.

The Massachusetts Alliance on Teen Pregnancy presents the conference every year, but by hosting the conference the Holy Cross Jesuits are sending the message that they have no qualms with its promotion of contraception and the presence of Planned Parenthood, which are intrinsically inimical to the pro-life teachings of the Catholic Church.

Holy Cross College Hosts on-Campus Planned Parenthood Workshops, Awards Pro-Abortion Governor

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[8mmMauser]

Matt Abbott writes this on The Thomas More Society and their long list of efforts. One was help for Terri.

...........................................

I recently attended the 10th year anniversary benefit dinner for the Chicago-based Thomas More Society, Pro-Life Law Center, a "not-for-profit, public interest law firm ... dedicated to fighting for the rights and dignity of all human life. The Society vigorously defends clients in state and federal courtrooms around the country, addressing vital issues across the pro-life spectrum, including pregnancy discrimination, end-of-life health care, the right of conscientious objection for medical workers, and freedom of speech for peaceable nonviolent protest."

~Snip~

Defending the Defenders of Terri Schiavo — We traveled to Clearwater, Florida, twice to defend out of state defendants who were prosecuted for trying to bring food and water to the dying Terri Schiavo. We also were asked to consult with the Schindlers, Terri's family, in St. Petersburg about issues arising in the wake of Terri's death and publication of books by both the Schindler family and Michael Schiavo.

Chicago law firm fights death culture

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Fred and Terri tar baby dailies...

This time the far left uses the tar baby to prove a point, a horror to them but a joy to most of us. Thanks, lefties, for bringing out this info we may have missed otherwise.

...........................

At last count, he’s flubbed questions on Iraqi WMD, the Jena Six, Terri Schiavo, Social Security, a national consumption tax, and drilling the Everglades. Now he’s taking on the United Nations and gun-control policy.

~Snip~

But just as importantly, Thompson appears to be making these mistakes as part of a shameless effort to pander to the far-right. Kevin Drum notes the conspiracy theories that underscore Thompson’s odd policy position.

National Rifle Association Vice President Wayne LaPierre insists the U.N. is concerned about more than illicit arms in African hot spots. He says the global body wants the firearms of American citizens — and much more.

“So, after we are disarmed, the U.N. wants us demobilized and reintegrated,” says the NRA’s executive vice president, Wayne LaPierre, according to the Economist magazine. “I can hear it now: ‘Step right this way for your reprogramming, sir. Once we confiscate your guns, we can demobilize your aggressive instincts and reintegrate you into civil society.’ No thanks.”

As Kevin concluded, “Fred is just telling social conservatives, ‘I’m one of you. And I’m not afraid to look like a complete loon if that’s what it takes to prove it.’”

ThompsonÂ’s policy troubles get a little worse

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Haleigh Poutre update.

No, we still don't know more about how Haleigh is doing. Since DSS failed to kill her, they have claimed exclusive property rights to Haleigh and tell us little. As usual "The Republican" of Massachusetts keeps watch and is the first report on updates. This is the latest.

SPRINGFIELD - Judge James J. Collins is considering a request to release impounded documents connected to the case against Jason D. Strickland, who is charged with assaulting his stepdaughter Haleigh Poutre.

The judge heard the request yesterday in Hampden Superior Court from The Boston Globe, which is seeking access to certain documents relating to Strickland.........................

Haleigh case papers sought

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Huckabee hounded...

Thread by wagglebee.

Washington, DC (LifeNews.com) -- Republican presidential candidate Mike Huckabee is under fire from Jewish groups after a speech he gave at a pro-life event the weekend before last. In the address to the Family Research Council, the former Arkansas governor referred to the deaths of 45-50 million unborn children from abortion as a holocaust.

Mike Huckabee Under Fire for Referring to Abortion Deaths as "Holocaust"

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Jill Stanek gives us some glimpses behind the mask of Planned Parenthood in a thread by wagglebee.

One of those employees, Dr. Murray Pelta, was an abortionist for PP/CA from 1992-2007, its medical director from 1997-2007. The stories he must have to tell, and he indeed tells a couple in his complaint.

I've tried to imagine what it's like to be on the inside of PP, particularly its upper echelon. But when a business' lifeblood is abortion, I'm sure we will not begin to fathom the depths of its depravity until someone finally writes that tell-all book. (Paging Dr. Pelta? It's certain to be a best-seller, sir. Consider it.)

Jill Stanek: Lawsuits by Former Abortion Staff Reveal Planned Parenthood's Problems

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Al Qadea doesn't like us either. They don't like FreeRepublic and in the past one of the organizations showed support for the killing of Terri. Thanks for the pings to this thread by dog, to floriduh voter and davidosborne. Same mindset, beheading or dehydration...

Yesterday, some were pestering as I tried to post. Error 504 appeared. Feeble and underwhelming.

In a special Internet announcement in Arabic, picked up DEBKAfile’s counter-terror sources, Osama bin Laden’s followers announced Monday, Oct. 29, the launching of Electronic Jihad. On Sunday, Nov. 11, al Qaeda’s electronic experts will start attacking Western, Jewish, Israeli, Muslim apostate and Shiite Web sites. On Day One, they will test their skills against 15 targeted sites expand the operation from day to day thereafter until hundreds of thousands of Islamist hackers are in action against untold numbers of anti-Muslim sites....

Al Qaeda Declares Internet Jihad (Free Republic is mentioned ...they don't like us)

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[wagglebee]

The WAnkers are probably hoping that al Qaeda will endorse them.

[floriduh voter]

bttt.

[BykrBayb]

Thanks for the update on Haleigh. I just looked for news of her a couple days ago, but didn’t find anything.

[floriduh voter]

www.judgegeorgegreer.com (his best friends forever, the Semblers put Baywalk up for sale and their Muvico complex in Tampa is losing money.)

What goes around comes around?

They FED the machine for years and helped Judge Greer and Charlie Crist get elected.

Now the machine is biting back. Their association with Judge Greer by running his campaign has tainted their family name forever and now their well is running a little dry.

Out, darn spot, out.

God Bless Terri, murdered by and for wealthy people.

[floriduh voter]

Reference: www.baynews9.com. Will be in paper tomorrow...
It’s not at www.judgegeorgegreer.com - yet. I just opened with that link CUZ that’s where all the facts and evidence are.

[Sun]

” www.baynews9.com. Will be in paper tomorrow...”

Thank you.

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This article appears in LifeNews, appeared in slightly different form and as a separate thread as "Awakenings" Regardless, it is worth a repeat as it so uncannily echoes details surrounding Terri's plight.

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On October 19, only months after being nearly dehydrated to death when his feeding tube was removed, Jesse Ramirez walked out of the Barrow Neurological Institute in Phoenix on his own two legs. Ramirez is lucky to be alive.

Early last June, a mere one week after a serious auto accident left him unconscious, his wife Rebecca and doctors decided he would never recover and pulled his feeding tube. He went without food and water for five long days.

But then his mother, Theresa, represented by lawyers from the Arizona-based Alliance Defense Fund, successfully took Rebecca to court demanding a change of guardianship on the grounds that Rebecca and Jesse's allegedly rocky marriage disqualified her for the role.

The judge ordered that Jesse be temporarily rehydrated and nourished. Then Jesse regained consciousness. Now, instead of dying by dehydration, he will receive rehabilitation and get on with his life--all because his mother rejected the reigning cultural paradigm that a life with profound cognitive dysfunction is not worth living.

Ramirez is only the latest instance of an unconscious patient waking up after being consigned to death by dehydration. Take the disturbing case of 12-year-old Haleigh Poutre in Massachusetts. Haleigh barely survived terrible child abuse and then was nearly done in by the very people charged with protecting her.

Only eight days after she was hospitalized in the wake of a beating, the Massachusetts Department of Public Social Services, acting on doctors' solemn assurances that she was "virtually brain dead," requested permission to remove her respirator and feeding tube. This request was approved by the Massachusetts Supreme Court.

But the doctors, social workers, and judges were wrong about Haleigh's prospects. Just before her life support was withdrawn, she began to exhibit signs of awareness--she picked up a stuffed duck when requested--leading to a last-minute reprieve. Today, while Haleigh's exact condition is not public information, reports in the media indicate she is awake and aware and able to eat some foods.

Jesse's Girl: Disabled Patients are Targets Following Terri Schiavo's Death

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[wagglebee]

You should post this as its own thread.

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Once again mentioned upthread "The Passion of Terri Schiavo" is billed. I'm curious if anyone finds current reviews.

Wake Up! Karen Finley is one of our more radical performers. So when she comes to town with a new work in progress called Wake Up!--and that work contains performances called "The Dreams of Laura Bush" and "The Passion of Terri Schiavo"--one hurries to see her. Radicalism, anger, daring--that is what we need these days, if not in Washington, at least on the stage. . . . (Curtainup) The Green Room, 45 Bleecker St, 212-239-6200, $22. Sun 7pm. Thru Sun.

What the critics say

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It appeared in slightly different form in a thread I posted upthread at #101. Too hot an issue to ignore, and worthy of a repeat IMHO.