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AMERIGROUP Reports Q3 Net Income of $22.5 Million or $0.43 per Diluted Share
Date:10/30/2009

notified the State of Ohio of its intent to exit the Aged, Blind and Disabled (ABD) program in the Southwest Region, effective in the first quarter of 2010. The Company will continue to provide services in the Southwest and West Central regions of Ohio for the TANF Medicaid population.
  • On October 23, 2009, the Company settled litigation regarding the purchase of certain assets related to the New Jersey Medicaid business of University Health Plans, Inc. (UHP). Under the terms of the settlement, the parties dismissed the litigation and the Company's New Jersey subsidiary will purchase certain UHP assets. The Company expects the purchase, which is subject to regulatory approval, to close during the first quarter of 2010.
  • "At our investor day in September, we discussed how outpatient services continued to be the primary factor driving our higher than expected costs in the third quarter, and said that we expected this trend to continue at least through the end of 2009," said James G. Carlson, AMERIGROUP Chairman and Chief Executive Officer. "More recently, we are seeing a significant spike in flu-related activity which is most prevalent in our southern states. The onset of what appears to be a severe flu season due to the H1N1 virus is the single most important driver of the increase in medical costs over the last 30 days."

    Carlson continued, "We believe the H1N1 flu, like the recession, will eventually fade. Over the longer term, we believe that there are a number of reasons to feel good about our future, including the sizable expansion plans in healthcare reform and the ability to improve the delivery of long-term care services. We believe that AMERIGROUP is very well-positioned to capitalize on these opportunities."

    Premium Revenues

    Premium revenues for the third quarter of 2009 increased 20.2% to $1.3 billion compared to $1.1 billion in the third quarter of 2008. Sequentially, premium revenu
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    SOURCE AMERIGROUP Corporation
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    1. AMERIGROUP Announces Preliminary Third Quarter Results
    2. AMERIGROUP Corporation to Discuss Third Quarter Earnings on October 30
    3. AMERIGROUP Corporation Names Two New Executives
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    5. AMERIGROUP Foundation Honors Warehouse of Hope Founder Craig Parson as a Healthy Hero
    6. AMERIGROUP Reports Q2 Net Income of $49.6 Million or $0.94 per Diluted Share, Including $0.43 per Diluted Share Positive Impact from Tax Adjustment
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    10. Dr. Emily Abrams Massey of Atlanta Honored as Healthy Hero by the AMERIGROUP Foundation
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