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WellCare wins round in HMO fightBy JENNIFER LIBERTO© St. Petersburg Times published March 15, 2003 TAMPA -- WellCare HMO Inc. won a battle this week against competitor Quality Health Plans Inc., a newcomer to the Medicare HMO industry, which has been ordered to stop soliciting WellCare members in Pasco and Hernando counties. Hillsborough Circuit Judge Vivian Maye granted WellCare an injunction against Quality on Monday. WellCare has accused Quality of stealing patients and trade secrets because some WellCare subcontractors helped start Quality. Quality has since countersued and asked for the case to be dismissed. At stake are some 133,000 Medicare beneficiaries. The federal government approved Quality to offer health care benefits starting Jan. 1. The company is the third in Hernando and the fourth in Pasco to offer Medicare HMO coverage. The injunction is not all that different from Quality's earlier agreement to voluntarily stop soliciting WellCare members until the judge makes a final decision. Maye decided that letters sent in November to HMO Medicare beneficiaries in Pasco and Hernando counties encouraged clients to shift plans. The letters essentially breached a contract between WellCare and its former subcontractor, MidAmerica, whose president was Haider Khan. Khan helped form Quality Health Plans, according to the order. Quality's attorney said he was disappointed in the ruling, but called its scope limited. The injunction is in place only until a final trial or until Dec. 31. "It reflects what my clients have already agreed to do pending a final decision on the merits of this case," said Philip Campbell of Shumaker, Loop & Kendrick in Tampa. Quality will continue to offer seminars that explain its health plans, but it will be careful not to send mailings to WellCare members. About 800 members switched from WellCare to Quality, a WellCare executive said at a hearing last month. WellCare seems satisfied with the judge's order. "WellCare is very pleased that the judge has granted an injunction to allow us to protect our business," spokesman Jeff Tucker said.
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