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CFO orders audit of Healthy Kids-WellCare transactions
7/25/2008 © Florida Health News
In the wake of WellCare Health Plans' admission that it owes $46.5 million to two state Medicaid programs, including Florida's, Florida Chief Financial Officer Alex Sink called for an independent audit of the Florida Healthy Kids Corp., one of the accounts that got short-changed. She chairs the Healthy Kids board.
“It is essential that we recover every last dime that WellCare owes the Florida Healthy Kids program,” Sink said in a prepared statement released Friday afternoon. “Today I’m calling for Healthy Kids to conduct an exhaustive and independent audit to ensure this program is made whole.”
The other program in Florida Medicaid that WellCare owes refunds to is Harmony Behavioral Health, which provides mental health and substance abuse treatment. Fernando Senra, spokesman for the Agency for Health Care Administration, said Friday that he would have to check next week to see what provisions AHCA has made for auditing those books.
Late Monday, when it admitted its "accounting errors" and lack of financial controls among former management, WellCare said it owed refunds to two state Medicaid programs, those in Illinois and to Florida. The refunds are due because Illinois Medicaid and two parts of Florida Medicaid -- Harmony and Healthy Kids -- require that health plans spend a certain percentage of the premium dollar on direct services to patients. The rules limit the percentage of the premium that can go to administrative expenses, marketing and profits; if the plans exceed that, they owe that money back to the state. WellCare has tried in recent years to persuade the Florida Legislature to lift the requirement.
The Tampa-based health plan has had a wholesale turnover in its management since it was raided by the FBI and state authorities in October. The company has not filed audited financial statements since then. The U.S. Attorney's Office is still investigating; the company faces lawsuits by stockholders and a whistleblower.
Regarding Sink's call for an audit, WellCare spokeswoman Amy Knapp said the company and its board "have cooperated in this matter and will continue to do so."
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