Amerigroup | National MCO Analyzer | 2012 (Event Driven)

If all goes as planned, Medicaid manged care organization Amerigroup will cease to exist as a stand-alone company in late 2012 when it is acquired by WellPoint, the second-largest health insurer in the country. The combined company will become the nation's largest Medicaid insurer. Amerigroup has grown at a dizzying pace through new contracts with state Medicaid programs, and is also growing through acquisitions it completed the purchase of New York Medicaid MCO HealthPlus in May 2012. At June 30, 2012, membership was up 35 percent over the same date in 2011, and total revenues for the second quarter increased 46 percent compared to the prior-year second quarter. Roughly half of the 700,000 members added in the first half of 2012 came from winning new service areas in Texas' managed care expansion and entering the Louisiana Medicaid market. The other half was mostly new members that came with HealthPlus. Amerigroup then entered the Washington managed Medicaid market in July 2012 and is preparing to enter Kansas in the first quarter of 2013.