Company to Serve About 50,000 People Beginning February 1, 2009
VIRGINIA BEACH, Va., Nov. 12, 2008 /PRNewswire-FirstCall/ -- AMERIGROUP Corporation (NYSE: AGP) announced today that the State of Nevada has given final approval to a contract authorizing the Company's Nevada subsidiary to enter that State's Medicaid and State Children's Health Insurance (SCHIP) programs beginning February 1, 2009.
The Nevada State Board of Examiners has approved a contract enabling AMERIGROUP Nevada Inc. to offer healthcare services to about 50,000 financially vulnerable Nevadans in Clark and Washoe counties. The State announced its intention to contract with AMERIGROUP's Nevada health plan in September, but the Board of Examiners must approve all major State contracts. The Board consists of the Governor, the Attorney General and the Secretary of State.
AMERIGROUP expects its Nevada health plan to be slightly accretive to diluted earnings per share in 2009.
About 100,000 people in Clark and Washoe counties receive their healthcare through the Medicaid and SCHIP programs. The State contracts with two private care management organizations to bring healthcare services to eligible residents. AMERIGROUP Nevada will serve about half the people enrolled in those programs.
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 http://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 expected 2008 and 2009 earnings which are subject to numerous factors, many of which are outside of our control, including our cash balances, the levels and amounts of membership, revenues, organic premium revenues, rate increases, operating cash flows, health benefits expenses, medical expense trend levels, our ability to manage our medical costs generally, seasonality of health benefits expenses, selling, general and administrative expenses, days in claims payable, income tax rates, interest rates, actions by the Federal Reserve, including changes in the Federal Funds Rate, our ability to enter into new markets or remain in our existing markets, earnings per share and net income growth. 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. These risks and uncertainties include, but are not limited to, national, state and local economic conditions, including their effect on the rate-setting process; timing of payments; the effect of government regulations and changes in regulations governing the healthcare industry; changes in Medicaid and Medicare payment levels and methodologies; liabilities and other claims asserted against us; our ability to attract and retain qualified personnel; our ability to maintain compliance with all minimum capital requirements; the availability and terms of capital to fund acquisitions and capital improvements; changes in interest rates by the Federal Reserve; the competitive environment in which we operate; our ability to maintain and increase membership levels; demographic changes; increased use of services; increased cost of individual services; epidemics; the introduction of new or costly treatments and technology; new mandated benefits or other regulatory changes; insured population characteristics and seasonal changes in the level of healthcare use; our ability to enter into new markets or remain in our existing markets; our inability to operate new products and markets at expected levels, including, but not limited to, profitability, membership and targeted service standards; catastrophes, including acts of terrorism or severe weather; and the unfavorable resolution of pending litigation. There can also be no assurance that we will achieve the estimated earnings discussed in this release or that our actual results for 2008 and 2009 will not differ materially from our current estimates. Our ability to achieve the earnings described is subject to a variety of factors, including those described above, many of which are out of our control.
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.
Investors: Julie Loftus Trudell
Senior Vice President, Investor Relations
News Media: Kent Jenkins Jr.
Senior Vice President, External Communications
|SOURCE AMERIGROUP Corporation|
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