Florida health insurer WellCare Health Plans Inc. has admitted to overcharging the states of Illinois and Florida and to overstating the company’s profits due to alleged accounting errors. One of the businesses affected is WellCare’s “Healthy Kids” contract with Florida Health Kids Corp., which provides insurance for children whose family income leaves them ineligible for Medicaid. WellCare now says it owes the two states a total of about $46.5 million.

The U.S. government is also investigating WellCare, and the company’s Tampa headquarters were the subject of a raid by agents from the FBI and the Department of Health and Human Services last October. In addition, a former employee has filed a whistle blower lawsuit against WellCare. Some analysts suggest that the whistle blower suit may be related to Wellcare’s Medicaid business, mental health business and reinsurance business in Florida. According to Wellcare, however, the complaint remains sealed, leaving the company in the dark as to the allegations against it.

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