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Amerigroup plans expansion in Texas; snags bid worth nearly $1 billion in business

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Amerigroup Corp. announced Tuesday that it won a bid to retain and expand business in Texas, the company’s largest market.  As of June 30, Virginia Beach-based Amerigroup served approximately 593,000 members in Texas. Under the new bid award, it will retain all existing products in the following markets:  Austin, Dallas/Fort Worth, Houston (including a September 1st expansion into the Jefferson service area)  and San Antonio.  The company will no longer participate in the Corpus Christi area, for which it currently serves approximately 10,000 members. 

In addition, Amerigroup said it will begin providing prescription drug benefits for all products and, pending final state approval, some in-patient hospital services. With this procurement, Amerigroup is expected to remain the largest Medicaid health plan in Texas.  “Texas has been a national leader in using innovative private-sector solutions to improve health outcomes for its citizens … We are grateful for the Health and Human Services Commission’s confidence and are committed to meeting their fiscal and health care goals,” James G. Carlson, Amerigroup’s chairman and CEO said in a statement. “While we have not received rates, our preliminary estimate for this award represents over $1 billion in incremental annualized revenue.”

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