WellCare Health Plans Inc was formed as a Delaware limited liability company in May 2002. In July 2004, immediately prior to the closing of our initial public offering, they merged the limited liability company into a Delaware corporation and changed their name to WellCare Health Plans, Inc. The Company provides managed care services exclusively to government-sponsored health care programs. The Company operated Medicaid health plans in Florida, Georgia, Hawaii, Illinois, Kentucky, Missouri, New York, Ohio and South Carolina. In connection with its acquisitions of Medicaid plans in South Carolina and Missouri , its Medicaid operations in those states began in February 2013 and April 2013, respectively. The Company recognize the cost of medical benefits in the period in which services are provided, including an estimate of the cost of medical benefits incurred but not reported ("IBNR"). Medical benefits expense includes direct medical expenses and certain medically-related administrative costs. The Company bear underwriting and reserving risks associated with its HMO and insurance subsidiaries. They retain certain of these risks through our wholly-owned, captive insurance subsidiary. They reduce exposure to large catastrophic losses by insuring levels of coverage for losses in excess of what they retain internally with highly-rated, unaffiliated insurance companies. The Company's health care operations are highly regulated by both state and federal government agencies.