WellPoint, Inc. (NYSE: WLP) announced today the completion of its acquisition of Amerigroup Corporation, one of the nation’s leading managed care companies that is focused on meeting the health care needs of financially vulnerable Americans.
“The acquisition advances our ability to more effectively and efficiently serve the growing Medicaid population, including the expanding dual eligible, seniors and persons with disabilities, and long-term services and support markets,” said John Cannon, WellPoint’s Interim President and CEO. “By leveraging our combined clinical capabilities, resources and expertise, WellPoint’s competitive position in the Dual Eligible and Medicaid markets will be enhanced and will help create more value for state governments and their program beneficiaries.”
With Amerigroup, WellPoint’s affiliated Medicaid health plans now serve approximately 4.5 million beneficiaries of state sponsored health care programs in 20 states, bringing the company’s total medical enrollment to approximately 36 million members in all affiliated plans. WellPoint also now has a presence in several states with significant dual eligible managed care opportunities.
Amerigroup will operate as a wholly owned subsidiary within WellPoint and will remain dedicated to effectively managing state sponsored programs and further expanding this business. Amerigroup’s management team will lead the combined Medicaid businesses.