Amerigroup Corp. reported a 67 percent increase in profit in the first quarter as its health plan memberships increased and medical costs moderated.
The Virginia-Beach based Fortune 500 company coordinates services for public health programs. Membership in its health plans grew to 1.97 million member by March 31, a 5.6 percent increase over the first quarter of 2010. In February, the company began full service to 29,000 aged, blind and disabled members in Texas.
“Medical cost trends continued to be moderate in the first quarter, and, while this can be partially attributed to favorable market conditions, it is also due to adept execution of our strategies and interventions to drive better delivery system access, performance and accountability,“James G. Carlson, Chairman and CEO of Amerigroup, said in a statement.
The company reported an increase of revenues of 12.3 percent to $1.5 billion in the first quarter on increased membership and higher premium rates in some states.
Profit soared 67 percent to $70.4 million, or $1.37 per diluted share, compared with $42.2 million, or 82 cents per share.
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