Amerigroup controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile1 entries
2006
Illinois Medicaid enrollment and fraud case
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.