Navigation Links
AMERIGROUP Successful Bidder in DC RFP

Company Evaluating Business in Light of Unresolved Audit Issues

VIRGINIA BEACH, Va., April 2, 2008 /PRNewswire-FirstCall/ -- On March 10, 2008, AMERIGROUP DC was notified that it was one of four successful bidders in the reprocurement of the District of Columbia's Medicaid managed care business. The contracts for this award were approved by City Council on March 22nd and AMERIGROUP DC had been engaged in final preparations for a start date of May 1, 2008.

Yesterday, the Company notified the District that it was suspending its participation in readiness review activities related to the new contract award, due to questions the District has raised regarding the calculation of rates.

For the past few weeks, the Company has been engaged in a dialogue with the District's Office of the Attorney General in its review of these questions, which were raised in connection with an audit completed in May 2007. On March 28, the District filed a complaint in D.C. Superior Court alleging that AMERIGROUP DC submitted a report to its regulators in which it misclassified or improperly included certain administrative costs as healthcare costs.

"We believe that the allegations advanced in the complaint are without merit and based upon a fundamental misunderstanding of well-established rating and regulatory requirements and, in any event, are not material to rate calculations," said James W. Truess, Executive Vice President and Chief Financial Officer. "In the normal course of business, these kinds of issues are resolved through direct communications between a vendor and the regulatory agencies with oversight responsibility."

"We are concerned that the complaint also calls into question the appropriateness of rates in the new contract," Truess continued. "While we remain hopeful that we can resolve these questions quickly, we cannot proceed with the FY 2009 contract while they remain outstanding."

AMERIGROUP Community Care of the District of Columbia currently serves about 38,000 financially vulnerable D.C. residents who are enrolled in Medicaid and has operated in the District for nine years.

About AMERIGROUP Corporation

AMERIGROUP Corporation (NYSE: AGP), headquartered in Virginia Beach, Virginia, improves healthcare access and quality for the financially vulnerable, seniors and people with disabilities by developing innovative managed health services for the public sector. Through its subsidiaries, AMERIGROUP Corporation serves more than 1.7 million people in the District of Columbia, Florida, Georgia, Maryland, New Jersey, New York, Ohio, South Carolina, Tennessee, Texas and Virginia. For more information, visit


Investors: Julie Loftus Trudell

AMERIGROUP Corporation

SVP, Investor Relations

(757) 321-3597

News Media: Kent Jenkins, Jr.

AMERIGROUP Corporation

SVP, External Communications

(757) 769-7859

Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Texas Senator Kirk Watson Honored as Champion for Children by the AMERIGROUP Foundation
2. AMERIGROUP Updates 2008 Guidance to Reflect Yesterdays Federal Reserve Action
3. AMERIGROUP Corporation to Present at the Lehman Brothers Global Healthcare Conference on March 20
4. Texas Senator Robert Duncan Honored as Champion for Children by The AMERIGROUP Foundation
5. AMERIGROUP Reports Q4 Net Income of $31.1 Million or $0.57 Per Diluted Share; Full-Year Net Income of $116.5 Million or $2.16 Per Diluted Share
6. Texas Senator Tommy Williams Honored as Champion for Children by the AMERIGROUP Foundation
7. AMERIGROUP Foundation Announces Winners of Word About Health Contest
8. AMERIGROUP Names Linda Whitley-Taylor as Executive Vice President, Associate Services
9. AMERIGROUP Community Care of Georgia Wins New Health Plan Accreditation from NCQA
10. AMERIGROUP Foundation Awards $100,000 to Grady Health System Foundation in Atlanta
11. AMERIGROUP Community Care Provides Doctors Office Makeover in Houston
Post Your Comments:
(Date:6/25/2016)... (PRWEB) , ... June 25, 2016 , ... Austin residents ... the American College of Mohs Surgery and to Dr. Russell Peckham for medical and ... highly effective treatment for skin cancer. The selective fellowship in Mohs Micrographic Surgery completed ...
(Date:6/25/2016)... (PRWEB) , ... June 25, 2016 , ... As a ... Magna Cum Laude and his M.D from the David Geffen School of Medicine at ... returned to Los Angeles to complete his fellowship in hematology/oncology at the UCLA-Olive View-Cedars ...
(Date:6/24/2016)... ... June 24, 2016 , ... A recent article ... are unfamiliar with. The article goes on to state that individuals are now more ... these less common operations such as calf and cheek reduction. The Los Angeles area ...
(Date:6/24/2016)... ... June 24, 2016 , ... ... Sessions in Dallas that it will receive two significant new grants to support ... as PHA marked its 25th anniversary by recognizing patients, medical professionals and scientists ...
(Date:6/24/2016)... ... ... BioMedics, Inc, makers of Topricin and MyPainAway Pain Relief Products, join The ‘Business for a ... an hour by 2020 and then adjusting it yearly to increase at the same rate ... assure the wage floor does not erode again, and make future increases more predictable. , ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... NAMUR , Belgium , ...  (NYSE MKT: VNRX), today announced the appointment of ... Board of Directors as a Non-Executive Director, effective ... the Company,s Audit, Compensation and Nominations and Governance ... Board, Dr. Futcher will provide independent expertise and ...
(Date:6/23/2016)... Any dentist who has made an implant supported ... Many of them do not even offer this as a ... laboratory costs involved. And those who ARE able to offer ... high cost that the majority of today,s patients would not ... Zadeh , founder of Dental Evolutions Inc. and inventor of ...
(Date:6/23/2016)... Research and Markets has announced the addition of ... Forecast to 2022" report to their offering. ... date financial data derived from varied research sources to present ... impact on the market during the next five years, including ... sub markets, regional and country level analysis. The report provides ...
Breaking Medicine Technology: