WellCare Looking Vulnerable

OKLAHOMA CITY -- Even now, with its reputation in tatters and its stock price in the toilet, sullied WellCare (WCG Quote) still has plenty left to lose.

Soon, WellCare's core businesses could take a painful hit as well. Starting this month, WellCare must compete with other health insurers for Medicare customers and then convince government authorities to renew contracts for its Medicare and Medicaid policies alike. Moreover, it must do this with a heavily publicized raid of its headquarters hanging over its head.

To its credit, late Friday, WellCare announced that it has managed to execute new Medicare contracts in Illinois and a handful of smaller markets for the company. Going forward, other states could very well follow suit. Ultimately, the next seven weeks will tell the story. ...