Texas Selects Amerigroup for Expanded STAR+PLUS Program

Amerigroup Corporation (NYSE:AGP) announced that its Texas health plan has won its bid to expand health care coverage to seniors and people with disabilities in Tarrant County (Fort Worth). The award was announced by the Texas Health and Human Services Commission (HHSC). It came as the result of a competitive two-region bidding process that increases the role of Amerigroup's Texas subsidiary in the STAR+PLUS program (see also Amerigroup Corporation).

"We are excited about the expansion of our services to the aged, blind and disabled population in the Tarrant Service Area," said Aileen McCormick, Southwest Regional CEO for Amerigroup. "This award recognizes that our experience serving this population throughout other parts of the State has made a significant difference in their lives, while simultaneously saving money for the State and taxpayers. HHSC is a national leader in managing this most challenging and expensive part of Medicaid, and we look forward to expanding our partnership with them."

In this bid, HHSC expanded the STAR+PLUS program to two regions, the Dallas and Tarrant service areas. Tarrant is a fully integrated program that includes behavioral health services. Amerigroup Texas will be one of two health plans serving approximately 30,000 members in that region. The announcement is subject to final contract negotiations between HHSC and Amerigroup Texas. These contract negotiations are expected to be finalized in summer 2010, with an operational start date in early 2011.

As of March 31, 2010, Amerigroup Texas served approximately 510,000 members, among them, over 55,000 who are aged, blind or disabled (ABD). Nationally, Amerigroup is a leader in coordinating care for individuals who participate in ABD programs, with approximately 200,000 members among this population.