Indianapolis-based health insurer WellPoint and Amerigroup, one of the largest Medicaid managed care insurers in the country, have agreed to terms in which WellPoint will acquire Amerigroup for $4.9 billion.
WellPoint will pay $92 per share in cash, purchasing all outstanding shares of Amerigroup, which is based in Virginia Beach, Va.
The move follows the Supreme Court's recent decision to uphold the Patient Protection and Affordable Care Act. The Medicaid expansion is now optional instead of mandatory for all states, as people with incomes up to 133 percent of the federal poverty level could be covered by 2014. Currently, Amerigroup serves 2.2 million Medicaid beneficiaries across 13 states.
"The acquisition of Amerigroup expands our scale and further diversifies our business mix by deepening our investment in the high-growth Medicaid marketplace," WellPoint CFO Wayne DeVeydt said in a news release. "It also increases our flexibility to serve customers across the economic spectrum."
WellPoint will pay $92 per share in cash, purchasing all outstanding shares of Amerigroup, which is based in Virginia Beach, Va.
The move follows the Supreme Court's recent decision to uphold the Patient Protection and Affordable Care Act. The Medicaid expansion is now optional instead of mandatory for all states, as people with incomes up to 133 percent of the federal poverty level could be covered by 2014. Currently, Amerigroup serves 2.2 million Medicaid beneficiaries across 13 states.
"The acquisition of Amerigroup expands our scale and further diversifies our business mix by deepening our investment in the high-growth Medicaid marketplace," WellPoint CFO Wayne DeVeydt said in a news release. "It also increases our flexibility to serve customers across the economic spectrum."
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