WellCare, which is contesting its terminated contract to help oversee Iowa's Medicaid program, has filed a lawsuit against the state.
WellCare of Iowa filed a lawsuit Tuesday in Polk County District Court against the state Department of Human Services. The company wants the agency to reverse its decision to terminate WellCare's contract to help manage the state's $4.2 billion Medicaid program.
A state official on Friday affirmed an administrative law judge's recommendation to terminate WellCare's contract over how the company disclosed information on fraud convictions of former executives. The judge also said the company had improper communication with state officials.
WellCare, a publicly traded insurer based in Tampa, Fla., says it properly disclosed information. It also says the findings should not have affected the company's selection for a state contract.
DHS says it does not comment on pending litigation.