VIRGINIA BEACH, Va., Nov. 20, 2008 /PRNewswire-FirstCall/ -- AMERIGROUP Corporation (NYSE: AGP) announced today that it plans to purchase certain assets from Centene Corporation, principally the right to provide managed care services to Centene's Medicaid members in New Jersey. In a related transaction, AMERIGROUP plans to sell certain assets to Centene, principally the right to provide managed care services to AMERIGROUP's Medicaid members in South Carolina. At the end of the third quarter of 2008, AMERIGROUP Community Care of South Carolina served 9,000 members in South Carolina and Centene served 54,900 members in New Jersey through its wholly-owned subsidiary, University Health Plans, Inc.
The transactions are subject to separate approvals by regulatory authorities in the states of New Jersey and South Carolina.
"This transaction allows us to bolster our presence and improve services to members in one of our original states," said James G. Carlson, AMERIGROUP Chairman and Chief Executive Officer. "The operations of our New Jersey health plan are solid. We believe we can effectively address the health needs of the additional members there and at the same time achieve operating efficiencies. We remain convinced that South Carolina is committed to a viable managed care program, but the current environment does not offer us the opportunity to reach adequate scale in a timely manner. Nevertheless, we believe this arrangement is beneficial to everyone."
Financial terms of the transactions were not disclosed. Each transaction will close upon the approval of regulators in the respective State, which is expected in the first quarter of 2009. The net effect of the transactions is expected to be slightly accretive in 2009.
AMERIGROUP's wholly-owned subsidiary in New Jersey currently serves approximately 103,000 people enrolled in publicly-funded healthcare programs such as Medicaid.
About AMERIGROUP Corporation
AMERIGROUP Corporation, 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 approximately 1.7 million people in Florida, Georgia, Maryland, New Jersey, New Mexico, New York, Ohio, South Carolina, Tennessee, Texas and Virginia. For more information, visit www.amerigroupcorp.com.
This release is intended to be disclosure through methods reasonably designed to provide broad, non-exclusionary distribution to the public in compliance with the Securities and Exchange Commission's Fair Disclosure Regulation. This release contains certain "forward-looking" statements related to closing of the transactions described herein and the effect of the transaction on membership and expected 2009 earnings which are subject to numerous factors, many of which are outside of our control. These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. There can also be no assurance that the transactions discussed in this release will close or that it will be accretive to 2009 earnings.
Investors should also refer to our Form 10-K for the year ended December 31, 2007 filed with the Securities and Exchange Commission ("SEC") and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with or furnished to the SEC, for a discussion of certain known risk factors that could cause our actual results 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 and, therefore, caution investors not to place undue reliance on them. We specifically disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
CONTACTS: Investors: Julie Loftus Trudell Senior Vice President, Investor Relations AMERIGROUP Corporation (757) 321-3597 News Media: Kent Jenkins Jr. Senior Vice President, External Communications AMERIGROUP Corporation (757) 769-7859
|SOURCE AMERIGROUP Corporation|
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