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AMERIGROUP Provides Status on Tennessee Rate Increase and Effect on 2008 Guidance
Date:6/10/2008

sed medical expenses. However, the most recent paid claims information indicates that the necessary rate increase would have to be higher than previously expected in order to offset the increased medical costs.

While the Company supports efforts to provide home and community-based services to members, premium rates need to accurately reflect utilization and costs. The Company is currently in negotiations with the State on a retroactive rate increase and is looking for resolution before June 30. Additionally, the State has proposed changes to the benefit structure effective in third quarter 2008, as well as a process to modify utilization. However, there can be no assurance at this time that the Company will receive a rate increase sufficient to cover medical costs or that the benefit changes will take effect as proposed or that utilization will be moderated. If the Company is unable to secure an adequate rate increase, there will be pressure on the second quarter and the Company does not expect to be able to achieve its existing full-year earnings guidance. The Company cannot update its guidance until there is resolution of its rate increase request.

AMERIGROUP Community Care, Tennessee began operations in Middle Tennessee on April 1, 2007, when the State launched its newly restructured TennCare program. As of March 31, 2008, AMERIGROUP served 355,000 members in the State, including 168,000 administrative services only (ASO) members in West Tennessee.

Goldman Sachs 29th Annual Global Healthcare Conference

As previously announced, senior members of AMERIGROUP's management team are scheduled to present at the Goldman Sachs Global Healthcare Conference on Wednesday, June 11 at 5:40 p.m. Eastern Time. The public may access a live webcast of the presentation and accompanying slides on AMERIGROUP's Web site, http://www.amerigroupcorp.com, on the investors' page.

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SOURCE AMERIGROUP Corporation
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