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AMERIGROUP Contracts with Federal Government to Offer Medicare Advantage Health Plans in Seven States
Date:9/18/2007

VIRGINIA BEACH, Va., Sept. 18 /PRNewswire-FirstCall/ -- AMERIGROUP Corporation (NYSE: AGP) today announced that it has signed contracts with the U.S. Centers for Medicaid and Medicare Services (CMS) to offer both Medicare Advantage Special Needs Plans (SNPs) and traditional Medicare Advantage health plans to address the specialized needs of seniors and people with disabilities in seven states.

AMERIGROUP currently coordinates care for approximately 5,000 individuals through Medicare Advantage Special Needs Plans (SNPs) in Texas and Maryland. The Company intends to add new Medicare Advantage plans that will focus on people with similar needs in five additional states -- Florida, New Jersey, New York, New Mexico and Tennessee -- including service area expansions in Texas and Maryland, beginning January 1, 2008.

All seven Medicare Advantage plans will focus primarily on two groups: people who are eligible for both Medicare and Medicaid (SNPs), and Medicare enrollees whose incomes narrowly exceed Medicaid eligibility requirements. AMERIGROUP serves many of these individuals today through its Medicaid programs.

"We have been working extensively with the aged, blind and those with disabilities through Medicaid for nine years, and adding programs to work with this group through Medicare is a natural next phase," said James G. Carlson, President and Chief Executive Officer of AMERIGROUP Corporation. "We are extremely pleased to increase our capacity to meet the health needs of seniors, a group that is growing rapidly. These Medicare Advantage plans are based in sound social policy, leverage our Company's capabilities and are consistent with our mission."

AMERIGROUP was founded in 1994 and initially focu
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SOURCE AMERIGROUP Corporation
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