Amerigroup Wins New Business in Kansas

VIRGINIA BEACH, Va., June 27, 2012 /PRNewswire/ -- Amerigroup Corporation (NYSE: AGP) announced today that it has won its bid to begin operations in the state of Kansas. The Kansas Department of Health and Environment (KDHE) finalized its contracts with Amerigroup Kansas Inc. and two other health plans following a competitive bidding process.

Amerigroup Kansas will serve members eligible for Medicaid including children, selected seniors and people with disabilities through the KanCare managed care program. KanCare, the state's comprehensive patient-centered care coordination program, will serve the state's financially vulnerable populations and those eligible for home and community-based services and long-term and institutional care. Initially, home and community-based waiver services for individuals with developmental disabilities will be included only in pilot programs.                                 

The current KDHE program, HealthWave, serves 230,000 Medicaid recipients statewide. KanCare is expected to cover more than 320,000 Medicaid recipients statewide. According to the National Association of State Budget Officers, Kansas spent an estimated $2.7 billion, inclusive of state and federal dollars, in state fiscal year 2011 on its Medicaid program, covering more than 460,000 individuals.

"We are pleased to bring our mission to improve health outcomes for low-income populations and promote independent living for seniors and people with disabilities to Kansas," remarked Amerigroup Chairman and Chief Executive Officer James G. Carlson. "We applaud the state's comprehensive, visionary approach to providing access to quality coordinated care and services for its citizens and are confident our expertise will help the state achieve its goals."

Amerigroup has been building relationships with providers, advocates and community organizations in the state for the past year in an effort to ensure members have access to quality care and improved health outcomes.

Amerigroup has been awarded three new contracts in the past year to include Louisiana and Washington, making Kansas the 14th state in which the Company will serve members. Amerigroup Kansas expects to begin serving members in the first quarter of 2013.

About Amerigroup Corporation

Amerigroup, a Fortune 500 company, coordinates services for individuals in publicly funded health care programs. Currently serving approximately 2.2 million members in 12 states nationwide, Amerigroup expects to expand operations in 2012 to Washington and in 2013 to Kansas, its 13th and 14th states, as a result of previously awarded state contracts. Amerigroup is dedicated to offering real solutions that improve health care access and quality for its members, while proactively working to reduce the overall cost of care to taxpayers. Amerigroup accepts all eligible people regardless of age, sex, race or disability. For more information, please visit www.amerigroup.com.

Forward Looking Statements

This release contains certain 'forward-looking' statements, including those with respect to membership and Amerigroup's expected start of operations in the State of Kansas. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual events to differ materially from those projected or contemplated in the forward-looking statements. Investors should refer to our filings with the Securities and Exchange Commission for a discussion of factors that could cause actual events to differ materially from our current estimates. Given these risks and uncertainties, we can give no assurances that any forward-looking statements will, in fact, transpire.

SOURCE Amerigroup Corporation