WellPoint is acquiring Amerigroup along with some other companies, such as 1-800-Contacts, a Draper, Utah based contact lens retailer. Please see the article published in ModernHealthcare.com below:
WellPoint said it entered a definitive agreement to acquire Amerigroup, a Virginia Beach, Va.-based managed-care company, for about $4.9 billion.
The deal will expand the Indianapolis-based health insurer’s Medicaid managed-care business, including its share of the dual-eligible population.
“We expect Medicaid spending under managed-care programs to increase by nearly $100 million by the end of 2014,” said WellPoint President and CEO Angela Braly during a conference call. “These opportunities will develop organically in addition to the Medicaideligibility expansion under healthcare reform.”
The combined company will serve about 4.5 million Medicaid beneficiaries, as well as have a Medicaid presence in 19 states. Amerigroup, which said its revenue is expected to double over the next five years, will operate as a wholly owned subsidiary of WellPoint.
The deal is expected to close in the first quarter of 2013.
WellPoint said last month that it planned to acquire a Draper, Utah-based contact lens retailer, for an undisclosed sum.