Amerigroup

Amerigroup is a United States health insurance and managed-care brand serving people enrolled in government-sponsored health programs. Its principal populations have included Medicaid beneficiaries, children covered through the Children's Health Insurance Program, low-income adults and families, seniors, people with disabilities, and beneficiaries eligible for both Medicare and Medicaid. The brand operates through state and federal program contracts, provider networks, benefit administration, primary-care coordination, utilization management, and other care-management services rather than through a conventional commercial insurance model alone. The business began in 1994 as AMERICAID Community Care, with an initial focus on children, mothers, and pregnant women enrolled in Medicaid. It became a publicly traded corporation in November 2001. Amerigroup expanded into Medicare Advantage in 2006, initially emphasizing special-needs plans for people eligible for both Medicare and Medicaid, and added traditional Medicare Advantage operations in 2007. Its government-program portfolio has included Medicaid managed care, CHIP, Medicare Advantage, dual-eligible special-needs plans, and products directed at specific low-income populations such as Supplemental Security Income recipients and families receiving assistance through Medicaid-related programs. In July 2012, WellPoint, now known as Elevance Health, agreed to acquire Amerigroup Corporation for $4.9 billion. After the transaction, Amerigroup became part of a larger national health-insurance group while retaining use as a public-program brand in selected markets. The brand's geographic presence, plan names, benefits, provider networks, and contractual responsibilities vary by state because Medicaid and related programs are administered through state-specific rules and procurement arrangements. The reference material describes Amerigroup as serving 7.7 million seniors, people with disabilities, low-income families, other state- and federally sponsored beneficiaries, and federal employees across 26 states. In July 2023, a name transition to Wellpoint was announced for six states, with implementation beginning in January 2024. This indicates a continuing brand-portfolio realignment within Elevance Health rather than a simple nationwide disappearance of the Amerigroup identity. Amerigroup has also supported community initiatives through the Amerigroup Foundation, employee volunteer programs, and an advisory board focused on seniors and people with disabilities. Its history includes a major federal Medicaid-fraud case arising from allegations that Illinois Medicaid applicants with costly medical conditions, including pregnant women, were improperly discouraged or excluded from enrollment.

Amerigroup began in 1994 under the name AMERICAID Community Care. Its early mission centered on managed health care for children, mothers, and pregnant women enrolled in Medicaid. This placed the company within the expanding United States market for publicly financed managed care, in which state governments contract with private health plans to organize benefits, provider access, and care coordination for eligible populations. The company became publicly traded in November 2001. During the early 2000s, its Illinois operations became the subject of a federal Medicaid-fraud case. A former executive, Cleveland Tyson, provided evidence alleging that the company had sought to enroll healthier beneficiaries while discouraging or excluding pregnant women and other people expected to require more expensive care. In October 2006, a federal jury found Amerigroup liable for $48 million in damages, which were trebled under applicable law. In March 2007, an additional penalty exceeding $190 million was imposed in relation to 18,000 allegedly false claims. Following appeals, Amerigroup agreed in July 2008 to settle the matter for $225 million. Tyson received $56 million under qui tam whistleblower provisions. Amerigroup expanded beyond Medicaid during the second half of the 2000s. In 2006 it entered Medicare Advantage, initially serving low-income people eligible for both Medicare and Medicaid through special-needs plans. In 2007 it began operating traditional Medicare Advantage plans. Its public-program portfolio subsequently covered Medicaid, CHIP, and Medicare, with products aimed at groups including Supplemental Security Income recipients, low-income children and mothers, uninsured adults and parents, and dual-eligible Medicare and Medicaid beneficiaries. The company also developed organizational programs related to its public-service orientation. In 2007 it created a National Advisory Board focused on seniors and people with disabilities. The board included community advocates, health-care experts, and academics and was convened by Lex Frieden, a disability-rights leader associated with the Americans with Disabilities Act. Its work addressed the design of health-care infrastructure and services for older adults and people with disabilities. The Amerigroup Foundation supported access to care, children and family health, and community improvement, while the company's Community Volunteers program provided employees with paid time to volunteer. On July 9, 2012, WellPoint, Inc. entered into an agreement to acquire Amerigroup Corporation for $4.9 billion. WellPoint later changed its corporate name to Anthem, Inc., and subsequently became Elevance Health, Inc. Amerigroup therefore shifted from an independent public company into a brand within a larger health-insurance organization. Its operations remained closely connected to state contracts, so its presence and offerings continued to differ across jurisdictions. In March 2020, Amerigroup notified Grays Harbor Community Hospital and Harbor Medical Group that their relationship would terminate effective June 28 of that year. In July 2023, a transition from the Amerigroup name to Wellpoint was announced in six states, beginning in January 2024. The rebranding reflects ongoing portfolio changes under Elevance Health; the Amerigroup name may nevertheless continue in selected government-program markets or historical references. Detailed current state-by-state availability, executive leadership, and corporate headquarters are not established by the supplied reference material.

1. 2023Wellpoint rebranding announced

   A change from Amerigroup to Wellpoint is announced for six states, beginning in January 2024.

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2. 2020Provider relationship termination announced

   Amerigroup informs Grays Harbor Community Hospital and Harbor Medical Group that their relationship will end on June 28.

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3. 2012Acquisition agreement with WellPoint

   WellPoint agrees to acquire Amerigroup Corporation for $4.9 billion.

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4. 2008Illinois Medicaid case settled

   Amerigroup agrees to a $225 million settlement resolving federal allegations concerning Illinois Medicaid enrollment practices.

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5. 2007Traditional Medicare Advantage operations begin

   The company begins operating conventional Medicare Advantage plans and establishes a National Advisory Board for seniors and people with disabilities.

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6. 2006Entry into Medicare Advantage

   Amerigroup enters Medicare Advantage, initially emphasizing special-needs plans for people eligible for both Medicare and Medicaid.

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7. 2001Amerigroup becomes publicly traded

   Amerigroup becomes a public corporation in November.

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8. 1994Business begins as AMERICAID Community Care

   The organization that became Amerigroup begins operations with a focus on Medicaid-related managed care for children, mothers, and pregnant women.

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A government-program health insurance and managed-care brand serving low-income families, children, seniors, people with disabilities, and other publicly sponsored beneficiaries.

• Medicaid managed careGovernment-sponsored health insurance1994

  Amerigroup's foundational offering is managed-care coverage for Medicaid beneficiaries. Plans organize access through contracted provider networks and may include primary-care assignment, referrals, utilization management, care coordination, and support for members with complex needs. Exact benefits, eligibility rules, covered services, and plan names vary by state contract.

• Children's Health Insurance Program (CHIP)Government-sponsored health insurance

  CHIP managed care serves eligible children whose families do not qualify for Medicaid but require publicly supported coverage. Amerigroup's CHIP-related activities have been structured around provider networks, preventive care, covered medical services, and coordination with state program requirements.

• Medicare AdvantageMedicare managed care2006

  Amerigroup entered Medicare Advantage in 2006 and later operated traditional Medicare Advantage plans. These plans provide Medicare benefits through private managed-care arrangements and may include network-based care, care coordination, and supplemental services subject to federal requirements and specific plan designs.

• Dual-eligible special-needs plansSpecial-needs health plan2006

  These plans target people eligible for both Medicare and Medicaid, a population often requiring coordination across medical, behavioral-health, pharmacy, and social-support systems. Amerigroup used this segment as an early entry point into Medicare Advantage and related low-income senior and disability coverage.

• FamilyCareLow-income family health coverage

  FamilyCare was described as a managed-care product for uninsured adults and parents of children eligible for CHIP or Medicaid. Its availability and precise benefits depended on the relevant state program and contract.

• Seniors and People with DisabilitiesMedicaid managed care

  This product category was designed for low-income beneficiaries receiving Supplemental Security Income and other seniors or people with disabilities. It emphasized managed care and coordination for members with potentially significant or ongoing health needs.

• Temporary Assistance for Needy Families population coverageMedicaid managed care

  This offering was associated with Medicaid managed care for low-income children and their mothers in populations connected with Temporary Assistance for Needy Families. Program design and eligibility were determined by state public-health arrangements.

• 2007National Advisory Board

  United States

  Amerigroup created a board of community advocates, health-care experts, and academics to advise on services and policy for seniors and people with disabilities.

  Outcome. The board advocated for health-care infrastructure capable of meeting the needs of older adults and people with disabilities.

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• Amerigroup Foundation community investment

  United States

  The Amerigroup Foundation supported access to care, healthy children and families, community organizations, health centers, and neighborhood improvement initiatives.

  Outcome. The supplied reference reports cumulative foundation awards of $17.3 million and more than $3 million in contributions during 2013.

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• Community Volunteers program

  United States

  Amerigroup supported employee volunteerism through a program recognizing community service and providing employees with paid time for volunteer work.

  Outcome. The program was intended to encourage employee participation in local community activities.

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• 2023Transition selected Amerigroup markets to WellpointStrategy

  Elevance Health announced a change to the brand architecture used for selected government-sponsored health plans.

  What changed. The Amerigroup name was scheduled to change to Wellpoint in six states beginning in January 2024.

  Aftermath. The announcement signaled a selective rebranding within Elevance Health rather than a documented immediate end to every Amerigroup-branded operation.

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• 2020Terminate relationships with two Washington health-care organizationsOther

  Amerigroup maintained relationships with Grays Harbor Community Hospital and Harbor Medical Group.

  What changed. The company notified both organizations that the relationship would terminate effective June 28, 2020.

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• 2012Agree to acquisition by WellPointM&A

  Amerigroup was an independent public health-insurance company operating in government-sponsored coverage markets.

  What changed. Amerigroup entered an agreement for WellPoint to acquire Amerigroup Corporation for $4.9 billion.

  Aftermath. Amerigroup became part of the larger organization that later used the Anthem and then Elevance Health corporate identities.

  Announced acquisition value. $4.9 billion transaction value (2012)

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• 2006Illinois Medicaid enrollment and fraud caseControversy

  A federal jury found Amerigroup liable after prosecutors alleged that its Illinois operations systematically sought healthier Medicaid enrollees and discouraged or excluded pregnant women and other applicants with costly medical conditions between 2001 and 2003. The case produced an initial $48 million damages finding, statutory trebling to $144 million, and an additional penalty exceeding $190 million in 2007. After appeals, Amerigroup settled the matter for $225 million in July 2008; whistleblower Cleveland Tyson received $56 million under qui tam provisions.

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• 2023Amerigroup brand transition to Wellpoint announced in six states

  A transition from the Amerigroup name to Wellpoint was announced for six states, with the change scheduled to begin in January 2024.

  Leadership changeOther
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• 2020Amerigroup terminates relationships with Grays Harbor Community Hospital and Harbor Medical Group

  Amerigroup notified Grays Harbor Community Hospital and Harbor Medical Group that their relationship would end on June 28, 2020.

  Other
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• 2012Amerigroup agrees to be acquired by WellPoint

  WellPoint, later renamed Elevance Health, entered an agreement to acquire Amerigroup Corporation in a transaction valued at $4.9 billion.

  M&A
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1. Amerigroup