WellPoint To Acquire Amerigroup
The $4.9 billion deal will put WellPoint into the big, although risky, health care market for Medicaid enrollees with the most costly health issues.
Los Angeles Times: WellPoint Aims To Profit From Medicaid With Amerigroup Purchase
One of the nation's biggest insurance companies is trying to cash in on healthcare to the poor. WellPoint Inc., the parent of Woodland Hills provider Anthem Blue Cross, agreed to pay $4.9 billion to purchase a company specializing in the Medicaid business. The all-cash deal calls for Amerigroup Corp. shareholders to receive $92 a share, a 43% premium over Friday's closing price (Hamilton, 7/10).
The New York Times: WellPoint To Acquire Amerigroup Amid Health Care Overhaul
WellPoint agreed on Monday to buy Amerigroup in a deal valued at $4.9 billion in cash, as one of the country’s biggest health insurers seeks to take advantage of an expansion of health care coverage instituted by the Obama administration (Abelson and De La Merced, 7/9).
The Wall Street Journal: WellPoint's Amerigroup Deal Marks Big Push For 'Duals'
WellPoint Inc.'s purchase of Medicaid insurer Amerigroup Corp. catapults WellPoint deep into the chase for a huge—but potentially risky—new market covering people with costly health problems (Kamp, 7/9).
Market Watch: Medicaid Insurers Surge On Amerigroup Deal
Medicaid insurers surged in early trading Monday, anticipating a reshuffling among health carriers after WellPoint Inc. announced plans to buy Amerigroup Corp. for a 43% premium. … The news sent shares of other Medicaid insurers soaring, as the market apparently now expects more mergers in the wake of the Supreme Court's ruling on President Barack Obama’s health-care overhaul bill (Britt, 7/9).
Reuters: WellPoint To Buy Amerigroup For $4.5 Bln In Medicaid Play
Health insurer WellPoint Inc will buy rival Amerigroup Corp for $4.46 billion in a major bet on the expansion of the U.S. government's Medicaid health plans for the poor. The companies announced the deal on Monday, just a week and a half after the U.S. Supreme Court upheld President Barack Obama's healthcare law, which aims to extend coverage to more than 30 million uninsured Americans (Sherman, 7/9).
Bloomberg: WellPoint To Buy Amerigroup For $4.9 Billion In Cash
WellPoint Inc., the second-biggest U.S. health insurer, will buy Amerigroup Corp. for $4.9 billion, a move that may spur a wave of acquisitions as companies compete to manage an expanding Medicaid market. Amerigroup stockholders will receive $92 a share in cash, 43 percent more than the July 6 closing price, according to today’s statement by the two companies. The agreement makes Indianapolis-based WellPoint the biggest private provider of Medicaid coverage for the poor with 4.5 million members, eclipsing the 3.5 million served by UnitedHealth Group Inc. (Nussbaum, 7/9).
Health News Florida: WellPoint To Vie For FL Medicaid Patients
WellPoint Inc., the nation's second-largest health insurer, will soon have a major presence in Florida with its purchase of Amerigroup Corp., one of the significant Medicaid contractors in the state. The Associated Press reported today that Indianapolis-based WellPoint will spend $4.46 billion to acquire AmeriGroup, which has Medicaid contracts with 13 states, including Florida, Texas and New York. Amerigroup is based in Virginia Beach, VA. Health-industry experts think WellPoint, which has essentially ignored Florida until now, has become interested because of all the low-income government-paid Medicare/Medicaid patients who will be moving into managed care (Gentry, 7/9).