TAMPA, Fla., Sept. 23 /PRNewswire/ -- WellCare Health Plans, Inc. , today announced it has been selected by the Centers for Medicare & Medicaid Services (CMS) to provide prescription drug plan (PDP) coverage to Medicare beneficiaries in Florida. In addition, for most of the 10 million individuals who qualify for financial assistance, one of WellCare's PDP plans will be offered with no monthly plan premium, no deductible, no coverage gap and lower drug co-payments in 49 states and the District of Columbia. WellCare is one of only five organizations selected in Florida to provide this offering.
WellCare, a company with 20 years of health care experience, is one of the nation's fastest-growing, publicly traded Medicare companies, with over 35 percent growth in 2005. WellCare currently provides prescription drug coverage through its Medicare Advantage plans to Medicare beneficiaries in Florida. With the new Medicare prescription drug coverage, beneficiaries in Florida will be able to access prescription drugs through WellCare's nationwide network of over 40,000 participating pharmacies.
"We are pleased to receive approval from CMS to offer affordable prescription drug coverage to Medicare beneficiaries," said Todd S. Farha, President and Chief Executive Officer of WellCare. "We look forward to telling Medicare beneficiaries about our three PDP offerings that could help the average American save up to 50 percent on their prescription drug costs."
All three of WellCare's PDP offerings feature no deductibles so beneficiaries can enjoy drug savings immediately. In addition, all three plans offer a CMS-approved list of drugs and access to WellCare's nationwide network of participating pharmacies.
"Our plans have monthly premiums ranging from $18.70 to $41.41, the lowest of which is a 43 percent savings compared to the state average premium of $33.01," said Heath Schiesser, President of WellCare's PDP business. "In fact, for those who are on both Medicare and Medicaid and for many of those who qualify for financial assistance, this plan is available for no monthly plan premium."
WellCare and other plans must wait until October to provide additional 2006 benefit information. However, Medicare beneficiaries can register now to receive information in October by calling a special WellCare hotline at 866- 800-6027 (TTY users call 877-247-6272) between 8 a.m. and 6 p.m. EST, Monday- Friday or by visiting http://www.wellcare.com/. The information will include a user- friendly guide that simplifies the PDP program along with helpful tools such as a drug-cost savings worksheet, tips on selecting the best plan, a sample list of covered drugs and a partial list of WellCare's network of over 40,000 participating pharmacies nationwide.
Overview of the New Medicare Prescription Drug Program
Medicare prescription drug coverage, also known as Medicare Part D, is a new multi-billion dollar investment by the federal government to provide all Medicare beneficiaries in Florida with prescription drug coverage. This new coverage begins on Jan. 1, 2006. Medicare beneficiaries in Florida will be able to access Part D coverage through stand-alone prescription drug plans, Medicare Advantage plans and through their employer retiree benefits.
"Prescription drug coverage is critical to millions of Americans," said Ace Hodgin, M.D., an internist and the Chief Medical Officer of WellCare. "Our plans will help people get the prescriptions they need and save them money."
Nationally, the approximately six million individuals who qualify for both Medicare and Medicaid currently receive their drug benefits via Medicaid. Starting on Jan. 1, 2006, the federal government has selected PDP companies to provide these drug benefits. In the middle of October 2005, these individuals will be assigned to a PDP such as WellCare. If these individuals do not choose another plan by Dec. 31, 2005, they will be auto-enrolled into a PDP to ensure they receive the full range of Medicare Part D benefits.
In addition, it is estimated that four million Medicare beneficiaries who do not qualify for full Medicaid will qualify to receive financial assistance and would be eligible for a WellCare plan with a low or no monthly plan premium.
About WellCare Health Plans, Inc.
WellCare Health Plans, Inc. provides managed care services targeted exclusively to government sponsored health care programs, focusing on Medicaid and Medicare. Headquartered in Tampa, Fla., WellCare serves approximately 808,000 members in Florida, New York, Connecticut, Illinois, Indiana, Louisiana and Georgia. WellCare will provide stand-alone prescription drug plans on a national basis under the Medicare prescription drug program. For more information about WellCare, please visit the Company's website at http://www.wellcare.com/.
Cautionary Statement Regarding Forward-Looking Statements
This release contains "forward-looking" statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions, including statements related to WellCare's expected 2005 and 2006 financial results, are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause WellCare's actual future results to differ materially from those projected or contemplated in the forward-looking statements. Additional information concerning these and other important risks and uncertainties can be found under the captions "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Registration Statement on Form S-1 originally filed with the Securities and Exchange Commission in June 2005, as amended, which contains discussions of the Company's business and the various factors that may affect it.
