Amerigroup Aids in Health Care Fraud Conviction

VIRGINIA BEACH, Va., May 26, 2010 /PRNewswire-FirstCall/ -- Today, Amerigroup (NYSE: AGP) announced its dedicated team assigned to investigate waste, fraud and abuse assisted federal authorities in the conviction of a Texas husband and wife team of physicians.

Dr. Arun Sharma and Dr. Kiran Sharma, of Kemah, Texas, were convicted of conspiring to commit health care fraud over a 10-year period, according to the U.S. Attorney for the Southern District of Texas. Entering guilty pleas in a Houston courtroom on April 26, 2010, the pair admitted to defrauding Medicaid and Medicare providers by billing for services not performed. The couple also forfeited tens of millions of dollars in assets and accepted 15- and eight-year prison sentences, as part of a plea agreement.

"We commend the authorities who successfully pursued this case," said Stanley F. Baldwin, Amerigroup executive vice president, general counsel and secretary. "The results of the case demonstrate that Amerigroup is working not only out in front to provide quality care for our members, but behind the scenes to ensure that we have a system of transparency and accountability for the states and providers we serve."

As part of the investigation, Amerigroup's Corporate Investigation Department (CID) helped to identify "superbills," or billing for medical procedures not performed and medication not administered as billed. It alerted the FBI and reviewed data and medical records in order to assist with the government's investigation.

Last year, the CID identified $10.5 million in overpayments and $5.9 million in reduced medical costs across the Company's health plans -- netting a savings to state governments and taxpayers.

For more information about the federal case, view the U.S. Attorney's web site.

About Amerigroup Corporation

Amerigroup, a Fortune 500 Company, coordinates services for individuals in publicly funded health care programs. Serving approximately 1.9 million members in 11 states nationwide, Amerigroup accepts all eligible people regardless of age, sex, race or disability. The Company's product offerings do not utilize any individual underwriting nor deny coverage due to pre-existing medical conditions. Amerigroup is dedicated to offering real solutions that improve health care access and quality for its members, while proactively working to reduce the overall cost of care to taxpayers. For more information and real story examples of these solutions, please visit www.amerigroupcorp.com.

SOURCE Amerigroup Corporation