WellCare Health Plans adds up the cost of layoffs
Written on August 4, 2008
WellCare Health Plans Inc. said eliminating 208 positions is costing $3.1 million.
The Tampa, Fla. provider of managed care services for government-sponsored health care plans announced it was reducing its work force in Florida and New York by 5 percent in May in response to changing business conditions. Late Friday, the company said in a filing with the Securities and Exchange Commission that it would take a total net pre-tax charge of $3.1 million associated with the work force reductions in the second quarter.
Included in the amount is about $4.1 million of expenses related to severance benefits, paid primarily in the second and third quarters. That was partially offset by previously accrued employee-related benefits that were paid and the reversal of previous accruals for employee compensation that will not be earned or paid, totaling about $1.5 million.
WellCare of New York is based in New York City and provides service in the Albany, N.Y., area.