<PAGE>
                                                                    EXHIBIT 10.7

                       AMENDMENT AND SETTLEMENT AGREEMENT

        This AMENDMENT AND SETTLEMENT AGREEMENT (this "AGREEMENT") is made and
entered into as of February 12, 2004, by and among WellCare Holdings, LLC, a
Delaware limited liability company ("PARENT"); WellCare Health Plans, Inc., a
Delaware corporation f/k/a WellCare Acquisition Company ("WELLCARE"); and Kiran
C. Patel, Pallavi Patel, Pradip C. Patel, Swati Patel, Rupesh Shah and Nita Shah
(each, a "STOCKHOLDER" and collectively, the "STOCKHOLDERS"). Parent, WellCare
and the Stockholders are sometimes referred to in this Agreement individually as
a "PARTY" and collectively as the "PARTIES."

                                    RECITALS

        A. Parent, WellCare and the Stockholders are parties to that certain
Purchase Agreement, dated as of May 17, 2002 (the "PURCHASE AGREEMENT"),
pursuant to which WellCare acquired all of the outstanding equity securities of
Well Care HMO, Inc., a Florida corporation, HealthEase of Florida, Inc., a
Florida corporation, Comprehensive Health Management, Inc., a Florida
corporation, and Comprehensive Health Management of Florida, L.C., a Florida
limited liability company.

        B. The purchase price payable under the Purchase Agreement (the
"PURCHASE PRICE") is subject to adjustment as set forth therein (including
Exhibit A thereto).

        C. A portion of the Purchase Price was paid by issuance of that certain
Senior Subordinated Non-Negotiable Promissory Note dated July 31, 2002, in the
original principal amount of $53,000,000, issued by WellCare to Kiran C. Patel,
as Stockholder Representative on behalf of the Stockholders (the "STOCKHOLDER
REPRESENTATIVE"), as amended by that certain Amendment No. 1 to Senior
Subordinated Non-Negotiable Promissory Note dated April 18, 2003 (as so amended,
the "ORIGINAL NOTE"), the principal amount of which Original Note is subject to
adjustment based on adjustments to the Purchase Price under the Purchase
Agreement.

        D. The obligations of WellCare under the Original Note are secured by a
pledge of a portion of the capital stock of WellCare, as set forth in that
certain Pledge Agreement, dated as of July 31, 2002 (the "PLEDGE AGREEMENT"),
between Parent and the Stockholder Representative.

        E. On September 15, 2003, WellCare delivered to the Stockholder
Representative (i) WellCare's Good Faith Estimate of the First Purchase Price
Adjustment pursuant to the terms of the Purchase Agreement, and (ii) the First
Payment Amount (as such term is defined in the Original Note) under the Original
Note, as calculated based upon such Good Faith Estimate of the First Purchase
Price Adjustment.

        F. On October 20, 2003, the Stockholder Representative delivered to
WellCare the Stockholders' written notice of detailed objections to WellCare's
Good Faith Estimate of the First Purchase Price Adjustment pursuant to the terms
of the Purchase Agreement.

        G. WellCare and the Stockholders desire to resolve all disputes that
have arisen between them regarding the calculation of the First Purchase Price
Adjustment and the First Payment Amount.

<PAGE>

        NOW, THEREFORE, in consideration of the covenants and promises set forth
herein, and for other good and valuable consideration (the receipt and
sufficiency of which are hereby acknowledged), intending to be legally bound,
the Parties agree as follows:

        1. Definitions.  Capitalized terms used and not defined herein shall
have the respective meanings ascribed to them in the Purchase Agreement.

        2. Settlement of Purchase Price Adjustments and Satisfaction of
Obligations.


           (a) The Parties stipulate and agree that the aggregate amount of the
First Purchase Price Adjustment shall be deemed to be $93,388,806. The Parties
further agree that (i) no further adjustments to the Purchase Price shall be
made pursuant to the Purchase Agreement (including, without limitation, Exhibit
A thereto), (ii) from and after the date hereof, Exhibit A to the Purchase
Agreement shall be of no further force or effect, and (iii) the amount specified
in the preceding sentence shall be the Final Purchase Price Adjustment for all
purposes under the Purchase Agreement and this Agreement.

           (b) Upon the execution of this Agreement by each of the Parties,
WellCare shall pay to the Stockholder Representative, on behalf of the
Stockholders, the sum of $5,000,000, of which $1,502,482 represents all interest
payable under the Original Note through and including December 15, 2003, based
upon the Final Purchase Price Adjustment set forth above, and the remainder
represents a payment of additional principal under the Original Note. Within
three Business Days following the date of this Agreement, WellCare shall pay to
the Seller Representative, on behalf of the Stockholders, the amount of any
interest payable under the Seller Note on account of the period from December
16, 2003 through the date hereof.

           (c) The Stockholders acknowledge and agree that the issuance of the
Replacement Note pursuant hereto, together with the payment described in Section
2(b) above and assuming WellCare's full compliance with its obligations under
the Replacement Note, shall fully discharge and satisfy all obligations of
WellCare with respect to the Purchase Price under the Purchase Agreement.

        3. Amendment and Replacement of Original Note. Simultaneously with the
execution and delivery of this Agreement, WellCare and the Stockholder
Representative shall execute and deliver an Amended and Restated Senior
Subordinated Non-Negotiable Promissory Note in the form attached hereto as
Exhibit A (the "REPLACEMENT NOTE"). As set forth therein, the Replacement Note
modifies the payment schedule set forth in, and otherwise supercedes and
replaces in its entirety, the Original Note, which the Stockholder
Representative shall deliver to WellCare for cancellation upon the execution of
this Agreement, at which time the Original Note shall be rendered null and void
and of no further force or effect.

        4. Amendment of Pledge Agreement; Release of Pledged Shares.


           (a) The Pledge Agreement is hereby amended as follows:

               (i) All references in the Pledge Agreement to the "Note" shall be
deemed to refer to the Replacement Note.

                                       2
<PAGE>

               (ii) The definition of "Pledged Shares" set forth in Section 1(b)
of the Pledge Agreement is hereby deleted in its entirety and replaced with the
following:

               ""Pledged Shares" means (i) until the date that Buyer makes the
           September 2004 Principal Payment under the Note, all of the issued
           and outstanding capital stock of Buyer, and (ii) from and after the
           date that Buyer makes the September 2004 Principal Payment under the
           Note and continuing until the termination of this Agreement pursuant
           to Section 19, 51% of the issued and outstanding capital stock of
           Buyer."

               (iii)  When used in the Pledge Agreement (as amended hereby) or
this Agreement, the term "SEPTEMBER 2004 PRINCIPAL PAYMENT" shall mean either
(A) the payment of principal due on September 15, 2004 under the Replacement
Note, or (B) if a Qualified IPO (as such term is defined in the Replacement
Note) shall be consummated on or prior to August 15, 2004, the $35,000,000
payment of principal due within 30 days following the consummation of such
Qualified IPO under the Replacement Note. All references in the Pledge Agreement
to the payment of the "First Payment Amount" shall be deemed to refer to the
payment of the September 2004 Principal Payment, and all references in the
Pledge Agreement to the payment of the Second Payment Amount are hereby deleted.

           (b) Upon the payment by WellCare of the September 2004 Principal
Payment, the Stockholder Representative shall execute and deliver to WellCare an
instruction letter, in the form attached hereto as Exhibit B, to the Escrow
Agent (as such term is defined in the Escrow Agreement, dated as of July 31,
2002 (the "ESCROW AGREEMENT"), among the Parent, the Stockholder Representative
and National City Bank), directing the Escrow Agent to release from escrow 49%
of the Pledged Shares (as such term is defined in the Pledge Agreement and in
the Escrow Agreement).

           (c) From and after the date hereof, all references in the Escrow
Agreement to the Pledge Agreement shall be deemed to refer to the Pledge
Agreement as amended hereby.

        5. Other Amendments to Purchase Agreement. The indemnification
provisions set forth in Article 9 of the Purchase Agreement are hereby amended
as follows:

           (a) The Buyer Indemnification Threshold and the Seller
Indemnification Threshold are each hereby increased to $2,000,000, and the
Stockholder Indemnification Cap and the Buyer Indemnification Cap are each
hereby decreased to $12,000,000; provided that the Stockholder Indemnification
Cap, as so amended, shall automatically be increased by the amount, if any, by
which (i) the aggregate amount of any and all Indemnifiable Losses paid or
incurred pursuant to Sections 9.2(a) and 9.2(e) of the Purchase Agreement by the
Buyer Indemnifiable Parties with respect to the Third Party Claim entitled E.S.
Thomas and Associates, Inc. vs. Well Care HMO, Inc., et al., Case No. 01-001408,
or any other Third Party Claim brought by the same plaintiff (or any Affiliate
of such plaintiff) based on substantially the same facts or circumstances as
those underlying such action (collectively, the "E.S. THOMAS CLAIM," and any
such Indemnifiable Losses, the "E.S. THOMAS LOSSES") exceeds (ii) $2,000,000;
provided, further, that in no event shall the amount of such increase exceed
$25,000,000 and in no event shall the Stockholder Indemnification Cap exceed
$37,000,000.

                                       3
<PAGE>

           (b) Solely for purposes of determining the final amount of the
Stockholder Indemnification Cap for purposes hereunder based upon any
adjustments thereto as a result of E.S. Thomas Losses (it being understood that
the Buyer Indemnified Parties shall be entitled to recover the full amount of
the E.S. Thomas Losses, if any, subject to the limitations described in Section
5(a) above, as and when such E.S. Thomas Losses are paid and/or incurred in
accordance with the applicable provisions of the Purchase Agreement), within 30
days after the final resolution of the E.S. Thomas Claim, WellCare shall give
written notice to the Stockholder Representative (the "CAP DETERMINATION
NOTICE") of the total amount of the E.S. Thomas Losses (with reasonable detail
and supporting documentation of such amount) and the applicable increase, if
any, to the Stockholder Indemnification Cap. If within 30 days after delivery to
the Stockholder Representative of the Cap Determination Notice, the Stockholder
Representative shall not have given written notice to WellCare of any objections
to the increase, if any, to the Stockholder Indemnification Cap set forth in the
Cap Determination Notice, then the amount of such increase to the Stockholder
Indemnification Cap shall be final and binding upon the parties. If within such
30 day period the Stockholder Representative shall give WellCare written notice
setting forth, in reasonable detail, any objections to the amount of the
increase, if any, to the Stockholder Indemnification Cap as set forth in the Cap
Determination Notice, then WellCare and the Stockholder Representative shall
proceed in good faith to negotiate a resolution of such dispute and, if not
resolved through negotiations, such dispute shall be resolved by litigation in
an appropriate court of competent jurisdiction.

           (c) Notwithstanding any other provision in the Purchase Agreement to
the contrary, the Buyer Indemnified Parties shall be entitled to recover
Indemnifiable Losses (including the E.S. Thomas Losses) under the Purchase
Agreement only to the extent that the aggregate amount of such Indemnifiable
Losses exceeds the Buyer Indemnification Threshold, as amended hereby, in which
case the Buyer Indemnified Parties shall be entitled to the full amount of all
Indemnifiable Losses in excess of the Buyer Indemnification Threshold up to the
amount of the Stockholder Indemnification Cap, as amended hereby.
Notwithstanding any other provision in the Purchase Agreement to the contrary,
the Seller Indemnified Parties shall be entitled to recover Indemnifiable Losses
under the Purchase Agreement only to the extent that the aggregate amount of
such Indemnifiable Losses exceeds the Seller Indemnification Threshold, as
amended hereby, in which case the Seller Indemnified Parties shall be entitled
to the full amount of all Indemnifiable Losses in excess of the Seller
Indemnification Threshold up to the Buyer Indemnification Cap, as amended
hereby. For the avoidance of doubt, (i) the aggregate amount of Indemnifiable
Losses which the Buyer Indemnified Parties shall be entitled to recover shall be
(A) $10,000,000 plus (B) the amount, if any (up to a maximum of $25,000,000), by
which the E.S. Thomas Losses exceed $2,000,000, and (ii) the aggregate amount of
Indemnifiable Losses which the Seller Indemnified Parties shall be entitled to
recover shall be $10,000,000. Notwithstanding the foregoing, (i) the Buyer
Indemnification Threshold shall not be applicable to , and the Buyer Indemnified
Parties shall be entitled to indemnification on account of, any and all
Indemnifiable Losses arising out of or relating to, the matters specified in
clauses (ii), (v) and (vi) of the first sentence of Section 9.2(a) of the
Purchase Agreement, and (ii) the Seller Indemnification Threshold shall not be
applicable to, and the Seller Indemnified Parties shall be entitled to
indemnification on account of, any and all Indemnifiable Losses arising out of
or relating to, the matters specified in clauses (ii) and (iii) of the first
sentence of Section 9.2(b) of the Purchase Agreement. For the avoidance of
doubt, the Parties' respective rights with respect to any Indemnifiable Losses
asserted prior to the date hereof shall not be



                                       4
<PAGE>

impaired, and any such Indemnifiable Losses shall be included in determining if
and when the Buyer Indemnification Threshold or the Seller Indemnification
Threshold, as applicable (as amended hereby), has been exceeded; provided,
however, that the Buyer Indemnified Parties shall not be entitled to assert or
recover any Indemnifiable Losses with respect to any Liability for severance
payments made or required to be made to Ragini Ravel, Kirit Shah, Dr. Jayant
Patel and Sally Dorfman, and no such Indemnifiable Losses shall be included in
determining if and when the Buyer Indemnification Threshold (as amended hereby),
has been exceeded.

           (d) The Buyer Indemnified Parties shall not be entitled to assert an
Indemnifiable Loss against the Stockholders if such Indemnifiable Loss arises
from a Liability to a healthcare provider for payment of medical claims, or for
failure to pay medical claims on a timely basis, for dates of service prior to
the Closing Date.

        6. Release.

           (a) Each of the Stockholders, on behalf of himself or herself and his
or her agents, attorneys, heirs, administrators, executors, assigns and other
representatives, and anyone acting or claiming on his, her or their joint or
several behalf (each, a "SELLER PARTY" and collectively, the "SELLER PARTIES"),
hereby releases, waives, acquits, forever discharges, and covenants never to sue
WellCare or Parent, their respective divisions, affiliates, subsidiaries, parent
corporation(s) and related entities, and all of such entities' respective past
or present employees, officers, directors, stockholders, partners, trustees,
fiduciaries, administrators, insurers, investors, executives, managers, agents,
attorneys, representatives, predecessors, successors and assigns, and anyone
acting on their joint or several behalf (collectively, the "WELLCARE
RELEASEES"), from any and all claims, actions, causes of action, demands,
damages, suits, costs, expenses, liabilities or other losses, of any kind
whatsoever, whether known or unknown, foreseen or unforeseen, direct or
consequential, legal or equitable, matured or unmatured, under any theory in
contract, tort or otherwise, which such Seller Party has or hereafter can, shall
or may have in any way arising from, growing out of, or related to (a) the
calculation of the Purchase Price Adjustments or the initial principal amount of
the Replacement Note, (b) any payment made under the Original Note or (c) the
obligations of WellCare to pay the Purchase Price (other than WellCare's
obligations to make payments under the Replacement Note).

           (b) WellCare, on behalf of itself and its affiliates, and their
respective agents, attorneys, assigns and other representatives, and anyone
acting or claiming on its or their joint or several behalf (each, a "WELLCARE
PARTY" and collectively, the "WELLCARE PARTIES"), hereby releases, waives,
acquits, forever discharges, and covenants never to sue the Seller Parties from
any and all claims, actions, causes of action, demands, damages, suits, costs,
expenses, liabilities or other losses, of any kind whatsoever, whether known or
unknown, foreseen or unforeseen, direct or consequential, legal or equitable,
matured or unmatured, under any theory in contract, tort or otherwise, which
such WellCare Party has or hereafter can, shall or may have in any way arising
from, growing out of, or related to the calculation of the Purchase Price
Adjustments or the initial principal amount of the Replacement Note.

        7. Change in Facts. The Parties acknowledge that the facts with
respect to which this Agreement entered into may turn out to be other than or
different from the facts now known



                                       5
<PAGE>

to each Party or believed by such Party to be true, and each Party therefore
expressly assumes the risk of the facts turning out to be other than or
different from such known or believed facts, and agrees that this Agreement
shall be in all respects effective and binding despite any such difference.

        8. No Admission of Wrongful Conduct. Each of the Stockholders hereby
acknowledges and agrees that, by WellCare entering into this Agreement, neither
WellCare nor any of the other WellCare Releasees are admitting any unlawful or
otherwise wrongful conduct or liability of any kind. This Agreement will not be
offered by or be admissible as evidence against WellCare or any other WellCare
Releasee, nor will it be cited or referred to by any Stockholder or any other
Seller Party in any action or proceeding except an action to enforce this
Agreement. In any action to enforce this Agreement in which this Agreement is
admitted into evidence or otherwise considered, this Agreement will not
constitute an admission by WellCare or any other WellCare Releasee or a waiver
of any claims or defenses WellCare or any other WellCare Releasee may assert.

        9. Representations and Warranties.

           (a) Each of the Stockholders hereby represents and warrants to
WellCare that (i) no other person or entity has or has had any interest in the
claims, demands or obligations referred to in this Agreement, (ii) such
Stockholder is under no obligation or restriction that would in any way
interfere or conflict with his or her performance hereunder, (iii) such
Stockholder does not presently have on file any claims, charges, grievances or
complaints against WellCare or any of the other WellCare Releasees in or with
any administrative, state, federal or governmental entity, agency, board or
court, or before any other tribunal or panel or arbitrators, public or private,
based upon any actions or omissions by WellCare or any of the other WellCare
Releasees occurring prior to the date hereof, and (iv) the execution and
delivery of this Agreement and/or the Replacement Note by such Stockholder will
not result in a violation or breach of, or constitute (with or without the
giving of notice or lapse of time or both) a default (or give rise to any right
of termination, cancellation, payment or acceleration) under, any Credit
Agreement, note or any other contract or agreement between any lender or any
other Person, including Bank of America, N.A., and any Stockholder.

           (b) Each of Parent and WellCare hereby represents and warrants to
each Stockholder that (i) no other person or entity has or has had any interest
in the claims, demands or obligations referred to in this Agreement, (ii) such
Party is under no obligation or restriction that would in any way interfere or
conflict with its performance hereunder, (iii) such Party does not presently
have on file any claims, charges, grievances or complaints against any
Stockholder or any of the other Seller Parties in or with any administrative,
state, federal or governmental entity, agency, board or court, or before any
other tribunal or panel or arbitrators, public or private, based upon any
actions or omissions by any Stockholder or any of the other Seller Parties
occurring prior to the date hereof, and (iv) subject to the receipt of consents
from Bank of America and GSC Partners, the execution and delivery of this
Agreement and/or the Replacement Note by such Party will not result in a
violation or breach of, or constitute (with or without the giving of notice or
lapse of time or both) a default (or give rise to any right of termination,
cancellation, payment or acceleration) under, any Credit Agreement, note or any
other contract or agreement between any lender or any other Person.

                                       6
<PAGE>

        10. Confidentiality. Each of the Parties hereby agrees to keep the terms
of this Agreement confidential; provided, however, that the foregoing shall not
prevent or restrict any disclosure (a) to such Party's professional advisors,
financing sources or prospective financing sources, (b) which is required by
order of court or Governmental or Regulatory Authority with subpoena powers
(provided that the Party subject thereto shall have provided the other Parties
with prior notice of such order and an opportunity to object or seek a
protective order and take any other available action), (c) in the course of any
Action or Proceeding between any of the Parties hereto or (d) by WellCare or any
of its affiliates to the extent required or desirable under applicable Law or
the rules of any stock exchange.

        11. Entire Agreement; Modification. This Agreement and the Exhibits
hereto constitute the entire agreement among the parties with respect to the
subject matter hereof and supersede all prior agreements and understandings,
both written and oral, among the parties with respect to the subject matter
hereof. This Agreement may be amended or modified only by an instrument in
writing duly executed by the Parties.

        12. Purchase Agreement and Pledge Agreement Effective. Except as
otherwise specifically set forth in this Agreement, all provisions of the
Purchase Agreement and the Pledge Agreement which are not in conflict with the
terms of this Agreement shall remain in full force and effect.

        13. Waiver. Any term or condition of this Agreement may be waived at any
time by the Party that is entitled to the benefit thereof, but no such waiver
shall be effective unless set forth in a written instrument duly executed by or
on behalf of the Party waiving such term or condition. No waiver by any Party of
any term or condition of this Agreement, in any one or more instances, shall be
deemed to be or construed as a waiver of the same or any other term or condition
of this Agreement on any future occasion. All remedies, either under this
Agreement or by Law or otherwise afforded, will be cumulative and not
alternative.

        14. Binding Effect. This Agreement is binding upon, inures to the
benefit of and is enforceable by the Parties and their respective successors and
assigns.

        15. Headings. The headings used in this Agreement have been inserted
for convenience of reference only and do not define or limit the provisions
hereof.

        16. Invalid Provisions. If any provision of this Agreement is held to be
illegal, invalid or unenforceable under any present or future Law, and if the
rights or obligations of any Party under this Agreement will not be materially
and adversely affected thereby, (a) such provision will be fully severable, (b)
this Agreement will be construed and enforced as if such illegal, invalid or
unenforceable provision had never comprised a part hereof, (c) the remaining
provisions of this Agreement will remain in full force and effect and will not
be affected by the illegal, invalid or unenforceable provision or by its
severance herefrom and (d) in lieu of such illegal, invalid or unenforceable
provision, there will be added automatically as a part of this Agreement a
legal, valid and enforceable provision as similar in terms to such illegal,
invalid or unenforceable provision as may be possible.

                                       7
<PAGE>

        17. Governing Law. This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of New York, without giving
effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of New York.

        18. Jurisdiction; Venue. All actions and proceedings arising out of or
relating to this Agreement shall be heard and determined in any Florida state or
federal court sitting in the City of Tampa, Florida, and each Party hereby
irrevocably accepts and consents to the exclusive personal jurisdiction of those
courts for such purpose. In addition, each Party hereby irrevocably waives, to
the fullest extent permitted by law, any objection which it may now or hereafter
have to the laying of venue of any action or proceeding arising out of or
relating to this Agreement or any judgment entered by any court in respect
thereof brought in any state or federal court sitting in the city of Tampa,
Florida and further irrevocably waives any claim that any action or proceeding
brought in any such court has been brought in an inconvenient forum.

        19. Waiver of Jury Trial. IN ANY ACTION OR PROCEEDING ARISING HEREFROM,
THE PARTIES HERETO CONSENT TO TRIAL WITHOUT A JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM BROUGHT BY ANY PARTY HERETO AGAINST THE OTHER OR THEIR SUCCESSORS
IN RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT,
REGARDLESS OF THE FORM OF ACTION OR PROCEEDING.

        20. Counterparts. This Agreement may be executed in any number of
counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

                            [SIGNATURE PAGE FOLLOWS]



                                       8
<PAGE>


        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

<TABLE>
<S>                                              <C>
  WellCare Health Plans, Inc.                    WellCare Holdings, LLC


  By:   /s/ Todd S. Farha                        By: /s/ Todd S. Farha
       ------------------------------------         ---------------------------------------------
       Todd Farha                                        Todd Farha
       President and Chief Executive Officer             President and Chief Executive Officer

                                         STOCKHOLDERS


   /s/ Kiran C. Patel                             /s/ Pallavi Patel
  --------------------------------------------   ------------------------------------------------
        Kiran C. Patel                                Pallavi Patel

   /s/ Pradip C. Patel                            /s/ Swati Patel
  --------------------------------------------   ------------------------------------------------
        Pradip C. Patel                               Swati Patel

   /s/ Rupesh Shah                                /s/ Nita Shah
  --------------------------------------------   ------------------------------------------------
        Rupesh Shah                                   Nita Shah
</TABLE>