WellCare to conduct internal probe, delay filing

NEW YORK (Reuters) - WellCare Health Plans Inc, a provider of health-care services under government programs that is under investigation by several federal and state agencies, said on Friday a special committee of its directors will conduct an independent probe.

WellCare (WCG.N), which serves 2.3 million elderly, low-income and other members through government-sponsored Medicare and Medicaid programs, also said it will delay quarterly financial filings to securities regulators as a result of the investigations.

The special committee will look into issues raised by the government probes, as well as any potential accounting irregularities, and recommend to the board of directors any remedial measures it finds may be warranted, the company said.

WellCare's Florida headquarters were raided by more than 200 state and federal agents last week and New York and Connecticut officials are also looking into the company's activities.

The health insurer also said last week that the U.S. Securities and Exchange Commission had requested unspecified information a day after the Florida raid.

The members of the special committee have all been determined by the board of directors to be independent under standards established by the New York Stock Exchange, the company said.

The special committee has retained the law firm of Davis Polk & Wardwell to advise and assist it in the conduct of the its independent investigation.

WellCare said it was cooperating with the U.S. Department of Justice, the U.S. Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General and the Florida Attorney General's Medicaid Fraud Control Unit.

The company said it has not been informed of the subject matter of the investigations, and does not know whether they might lead to fines, penalties, operating restrictions or impacts on the its past financial statements.

However, the Connecticut attorney general said it was investigating transactions between WellCare and its affiliate companies as they relate to costs to the state's Medicaid program. Similarly, earlier this week, a person familiar with the New York investigation said regulators were reviewing contracts the insurer has with the state's Medicaid program.

WellCare's stock, which was trading at higher than $122 per share prior to the raid last week, closed at $27.37 on the New York Stock Exchange on Friday.

(Reporting by Bill Berkrot)