Amerigroup Wins New Business in Washington State

Amerigroup Corporation (NYSE: AGP) announced that it is expanding operations to the West Coast. The Washington State Health Care Authority (HCA) announced its intent to contract with Amerigroup Washington, Inc., and four other health plans as a result of a statewide competitive bidding process (see also Medicare and Medicaid).

Amerigroup Washington will participate in the Healthy Options program and provide services for Temporary Assistance for Needy Families (TANF), TANF-related Children's Health Insurance Program (CHIP), and seniors and people with disabilities who are not also eligible for Medicare. Additionally, Amerigroup will participate in the state's Basic Health program, which currently provides subsidized health coverage for approximately 40,000 low-income adults.

The Healthy Options program currently provides fully capitated, managed care services for approximately 700,000 TANF and CHIP recipients, which is about 60 percent of Washington's total Medicaid/CHIP population. HCA intends to add 100,000 Medicaid beneficiaries who are eligible for Supplemental Security Income (SSI) but not Medicare under the new contracts at this time.

"We are grateful for Washington's confidence in our abilities to manage these vulnerable populations and are committed to helping the state achieve its health care and fiscal goals," said Amerigroup Chairman and Chief Executive Officer James G. Carlson. "Amerigroup has been building relationships with providers and community organizations in the state for the past 18 months in an effort to ensure members have access to quality care and improved health outcomes."

HCA is expected to finalize contracts with successful bidders by late February. Amerigroup Washington will operate out of Seattle, and subject to finalization of its contract with HCA, is expected to begin serving members on July 1, 2012.

Washington represents the 13th state in which Amerigroup will serve members and is the second contract for a new state, in addition to Louisiana, to be awarded to the Company within the past six months.