WellCare reaches settlement

WellCare Health Plans Inc. has reached a preliminary agreement to settle an ongoing investigation into allegations of false claim filings. The key element: a cash penalty of $137.5 million.

WellCare would pay that total to the U.S. Department of Justice, and the United States Attorney's Offices for the Middle District of Florida and Connecticut, plus interest, over a 36-month period, according to a document filed with the Securities and Exchange Commission.

If ownership changes during the next three years, the total payment amount increases by $35 million, and the entire balance must be paid immediately.